Project Evaluation

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College of Arts and Sciences
BASIC
MANAGEMENT WITH THE EXCITEMENT
and sense of urgency and
PRINCIPLES
2 | Project Evaluation
momentum of a new project, the natural tendency is to dive right in. Your enthusiasm
and imagination will be essential to meeting project objectives, but they are not
enough alone. Successful projects require effective management.
Planning
Your
Project
Every project has a life cycle, composed of the phases it goes
through from beginning to completion.
The broad phases of an Office of Learning Technologies funded project are:
● Formulating the concept, goals and objectives of a project that uses technology to
enhance learning and skills development;
● Applying for OLT funding;
● Conducting the initial phase (developing partnerships, conducting a needs

assessment, community learning asset mapping);
● Conducting the pilot project;
● Writing a final report and disseminating your results to others.
A project plan sets the ground rules and states them in a clear fashion. This is especially
important since OLT projects typically include multiple partners and stakeholders with differing
interests and perspectives. Many problems experienced on projects could have been avoided
or lessened by developing a detailed project plan at the outset. First, it is vital that everyone
understands and agrees to the "ground rules" that will govern the project from here on in. You
need to ensure that the objectives are clearly stated so that there is no disagreement later on.
Second, the project plan helps you to control and measure your progress. Now that your
team members and financing are finalized, you should revisit your action plan and add the
specific details that will allow you to manage successfully. Third, the project plan will help you
deal with any changes that may occur (and they inevitably do occur!).
For example, what if a stakeholder wants to add a new objective to the project? A clear
project plan will help you deal with this situation in keeping with the overall project objectives.
Finally, the project plan will help to cement stakeholder support over the coming months and
years of the project.
To provide the maximum benefits, your project plan should be relevant, understandable
and complete, and reflect the size and complexity of your unique project.
Your project plan should include the following elements:
● A project charter
● A calendar of activities
● A time schedule
● A responsibility matrix
● A project plan budget
● Major milestones with target dates
● A risk management strategy
The amount of detail in your project plan will depend on your needs. It may be quite
brief or very detailed. It is up to you to develop an appropriate project plan based on the nature
of your project. The Project Charter is a document that demonstrates management support
for the project, authorizes the project manager to lead the project and allocate resources as
required. It is very easy to create a project charter. It simply states the name and purpose of
the project, the project manager's name and a statement of support by management. It is
signed by senior management of the responsible organization and the partner organizations.
The project charter should be distributed widely - to anyone with an interest in the
project. This will help build momentum, reinforce the project manager's authority, and possibly
draw other interested and valuable team members into the project. A Calendar of Activities is
one of the most important tools in a project manager's toolkit.
By dividing a project into the individual tasks required to complete it, the Calendar of
Activities:
• Provides a detailed view of the project's scope;
• Allows you to monitor what has been completed and what remains to be done;
• Allows you to track labor, time and costs for each task;
• Allows you assign responsibility for specific tasks to team members;
• Allows team members to understand how they fit into the "big picture".
The Time Schedule
In your action plan you laid out the

activities of your project in their logical
sequence. You have now expanded on the
action plan to create a Calendar of
Activities with a detailed work breakdown
structure. Having identified the tasks to be
completed and determined the sequence
for doing them, you are ready to prepare
the Time Schedule.
The Time Schedule identifies logical

relationships between project activities,
ensures personnel is available for tasks
when needed and helps you to manage
time effectively and complete your project
when planned. When setting the Time Schedule, review all the tasks and the sequence for
doing them. Some tasks are "dependent" on others and can only be started when others are
finished.
Other tasks can be done concurrently, if you have sufficient human resources. External
factors may also influence your schedule. You may already have a list of eager learners and
the learning materials ready for your project's launch date, but repairs at the local community
center mean that the classroom facilities are unavailable until next month. Project management
software permits you to use Gantt charts for schedules. Gantt charts are popular because they
graphically display the relationships between tasks.
If you do not have project management software, spreadsheet software can also be
used for schedules, as in this example showing one summary task:
Managing the Time Schedule
Despite your best efforts at scheduling, there is often a rush to meet project deadlines.
There seem to be three major reasons for this:
● No project manager is assigned. Most project resources are focused on

completing the project deliverables, with little attention paid to actually managing
the project.
● A perception that project management is "administration" or overhead. In fact, as
we try to emphasize throughout this toolkit, project management is an essential
foundation for ensuring quality and timeliness.
● Lack of awareness of project management techniques.
The following hints may help to keep your

project on schedule:
● When creating the Time Schedule,

involve key personnel who are familiar
with individual tasks, can estimate the
time they will require and know the
problems you may face.
● Discuss the responsibilities and
priorities that partners have within
their own organizations that may
impact the time they can devote to
your project.
● Allot time in the schedule for project management activities - 10% of total project
time is a general rule of thumb.
● Hold regular project status meetings with the entire team to discourage
procrastination and identify difficulties early.
Responsibility is accepting
The Responsibility Matrix
that you are the cause and the
solution of the matter.
A Responsibility Matrix is a valuable project management tool that ensures someone
accepts responsibility for each major project activity and that nothing falls through the cracks. It
need not be complex and is easily created by using your project schedule.
To create a Responsibility Matrix, refer to your Time Schedule. The left hand column
enumerates all the required tasks for your project. All the team members (e.g. project manager,
evaluation consultant, office administrator, technical support, etc.) for your project. Enter a code
in each cell that represents that team member's involvement in the task in that row. For
example:
Choose codes appropriate to your project; the key is to clearly identify who has a role in
every activity, who is accountable and who must sign off. Make sure the matrix is included in
the project plan so that every participant is clearly aware of their responsibilities.
The Project Plan Budget
As part of the application

process, you prepared a budget for Keep the Project Plan Budget as simple as possible while
your project that meets OLT maintaining accuracy. If you have experience in project
guidelines. This "best estimate" of accounting, enter the costs estimates from the budget
for each of the tasks in your Schedule. This way, as
costs will be an important tool for
actual expenses come in they will automatically be
managing resources while delivering a posted to the project, making the Financial Detail sheets
quality result. It is important to have and Cashflow Forecast forms required in your quarterly
the most detailed and accurate reports to OLT easier to fill out.
estimates possible for major project
costs (usually wages, materials and
supplies and overhead) at the start of
the project. With this information, the
actual process of producing the
Project Plan Budget is simple. Simply add up the labor and equipment costs of each task in the
Time Schedule you produced. These costs should fit within the financial budget approved by
OLT.
Target Dates
Milestones are significant events in a project, usually the completion of a major

deliverable. You defined project milestones and set target dates in your project action plan as
part of the application for funding process. List these milestones and target dates in the Project
Plan to ensure that everybody involved in the project is aware of them.
While all those involved doubtless recognize that meeting them is important to achieving
the objectives of your project, there are also additional, less obvious, benefits. Meeting
milestones on schedule prevents wasting resources, maintains the momentum of the project
and builds credibility among potential future partners.
Risk is inherent in all projects. In project management terms, "risk" refers to an uncertain
event or condition that has a cause and, that if it occurs, has a positive or negative effect on a
project's objectives, and a consequence on project cost, schedule or quality.
A risk response plan can help you. It identifies the risks that might affect your project,
determines their effect on the project and includes agreed-upon responses for each risk.
Common sources of risk in community learning initiatives include:
● Technical risks: such as unproven technology
● Project management risks: such as a poor allocation of time or resources
● Organizational risks: such as resource conflicts with other activities
● External risks: such as changing priorities in partner organizations
Step-by-
Step
Project
B Manage
THE PRODUCT LIFE CYCLE refers to a logical sequence
of activities to accomplish the project’s goals or objectives.
Regardless of scope or complexity, any project goes
● In Project Origination an individual proposes a project to create a product or

develop a service that can solve a problem or address a need in the Performing
Organization. The Performing Organization then submits the proposal to an
evaluation and selection process. If selected, a budget or further management
commitment for the project may also be required before a Project Manager is
actually assigned and the project is authorized to progress to Project Initiation.
Depending upon the standards and practices of the Performing Organization, a
time delay between the project's proposal and selection and its actual initiation
may occur.
● At the beginning of Project Initiation, a Project Manager is assigned. The Project

Manager works with the Project Sponsor to identify the necessary resources and
team members needed to further develop the key project parameters — Cost,
Scope, Schedule, and Quality (CSSQ). The Project Team documents its charge in
the form of a Project Charter, which is based on the Project Proposal, which
includes the initial Business Case. Approval of the Project Charter by the Project
Sponsor authorizes the designated team to begin the initial planning effort. The
initial Project Plan resulting from Project Initiation differs in the level of detail and
the validity of its estimates from Project Origination, and must be at a level
sufficient to acquire any additional resources needed to progress to the next
phase. The Project Plan also includes plans for involving and communicating with
all the parties that are affected by the project, as well as identification of an initial
set of foreseeable risks that can threaten the project. At the cease of Project
Initiation, based on the initial planning documents, the Business Case is revised
and re-evaluated and a decision is made to either halt the project, or proceed to
Project Planning.
● Project Planning builds on the work done in Project Initiation, refining and
augmenting CSSQ and Project Plan deliverables. Usually, additional members join
the Project Team, and they assist the Project Manager in further elaborating the
details of the Cost, Scope, Schedule and Quality. A number of key elements are
added to the Project Plan, including project-specific items such as change control,
acceptance management and issue management, as well as externally-focused
items such as organizational change management
and project transition. The initial list of project risks is augmented, and detailed
mitigation plans are developed. Project Planning marks the completion of the
Project Plan — i.e., no work is left uncovered. However, some of the later phases
of the project work may continue to be planned in more depth (e.g., Transition and
Implementation details may not be developed until later in Project Execution). At
the cease of Project Planning, the Business Case is revised and re-evaluated
based on the completed planning documents and a decision is again made to
either halt the project, or to commit the resources necessary for Project Execution
and Control.
● Project Execution and Control is where most of theresources are

applied/expended on the project. A significant number of team members will join
the project at the beginning of this phase. The primary task of the Project Manager
during Project Execution and Control is to enable the Project Team to execute the
tasks on the defined Project Schedule and develop the product or service the
project is expected to deliver. The Project Manager uses the processes and plans
prepared during Project Initiation and Project Planning to manage the project,
while preparing the organization for the implementation of the product/service and
for transitioning the product/service responsibility from the Project Team to the
Performing Organization.
● In Project Closeout, the Project Team assesses the outcome of the project, as well
as the performance of the Project Team and the Performing Organization. This is
accomplished primarily through soliciting and evaluating feedback from
Customers, Project Team members, Consumers and other stakeholders. Key
project metrics are also captured to enable the Performing Organization to
compare and evaluate performance measurements across projects.
PROCESS AND TASK IN THE PROJECT

LIFECYCLE
Project Roles and Responsibilities
There are many groups of people

involved in the project lifecycle. The Project Team is a group that is responsible for planning
and executing the project. It consists of a Project Manager and a variable number of Project
Team members, who are brought in to deliver their tasks according to the Project Schedule.
The Project Manager is the person who is responsible for ensuring that the Project Team
completes the project.
The Project Manager develops the Project Plan with the team and manages the team's
performance of project tasks. It is also the responsibility of the Project Manager to secure
acceptance and approval of deliverables from the Project Sponsor and Stakeholders. The
Project Team Members are responsible for executing tasks and producing deliverables as
outlined in the Project Plan and directed by the Project Manager, at whatever level of effort or
participation has been defined for them.
On larger projects, some Project Team members may serve as Team Leaders,
providing task and technical leadership. The Project Sponsor is a manager with demonstrable
interest in the outcome of the project who is responsible for securing spending authority and
resources for the project.
Ideally, the Project Sponsor should be the highest-ranking

manager possible, in proportion to the project size and scope.
The Project Sponsor initiates the Project Proposal process, champions the project in the
Performing Organization, and is the ultimate decision-maker for the project.
The Project Sponsor provides support for the Project Manager, approves major
deliverables, and signs off on approvals to proceed to each succeeding project phase. The
Project Sponsor may elect to delegate any of the responsibilities to other personnel either on
or outside the Project Team. Performing Organization Management (POM) includes all
members of the organization's management team that may exert influence on Project Team
members or be affected by and involved in the development and implementation of the
product of the project.
The committees that are formed to evaluate and select proposed projects for the
Performing Organization are comprised of members of the Performing Organization
Management. The Project Proposal Team is a group responsible for preparing the Project
Proposal in the Origination phase. It is organized by the Project Sponsor.
The Project Selection Committee comprises members of the Performing Organization

Management team who meet on a regular basis to evaluate Project Proposals and select
projects for initiation. They maintain the Project Proposal rating models and project selection
criteria. Customers comprise the business units that identified the need for the product or
service the project will develop. Customers can be at all levels of an organization, from
Commissioner to entry-level clerk. Since it is frequently not feasible for all the Customers to be
directly involved in the project, the following roles are identified:
Customer Representatives are members
of the Customer community that are identified and made available to the project for their
subject matter expertise.
Their responsibility is to accurately represent their

business units' needs to the Project Team, and to validate
the deliverables that describe the product or service that the
project will produce. Customer Representatives are also
expected to bring back to the Customer community the
information about the project.
Towards the end of the project, Customer

Representatives will test the product or service the project is
developing, using and evaluating it while providing feedback
to the Project Team.
Customer Decision-Makers are those

members of the Customer community who have
been designated to make project decisions on behalf
of major business units that will use, or will be
affected by, the product or service the project will
deliver.
Customer Decision-Makers are members of

the POM responsible for achieving consensus of their business unit on project issues and
outputs, and communicating it to the Project Team. They attend project meetings as requested
by the Project Manager, review and approve process deliverables, and provide subject matter
expertise to the Project Team. On some projects, they may
also serve as Customer Representatives.
Consumers include all the people that will use the product or
service that the project is developing. Consumers internal to
the Performing Organizations may also be Customers. Internal Stakeholders include all the
people that are in any way affected by the new product or service within the Performing
Organization.
This may include the Project Team, the Performing Organization Management,
Customers, as well as Customer co-workers who will be affected by the change in Customer
work practices due to the new product or service; Customer managers affected by modified
workflows or logistics; Customer correspondents affected by the quantity or quality of newly
available information; and other similarly affected groups. External Stakeholders include all the
people outside the Performing Organization that are in any way affected by the new product or
service.
The purpose of Project Origination is to evaluate projects proposed for the next
planning cycle and to reach a consensus on the projects to be selected. During this phase, the
strength of a project's Business Case is tested, and the viability of the Proposed Solution is
explored. A determination is made as to whether the project is consistent with the agency's
strategic plan and affordable within budget guidelines
Each organization has its own approach to green-lighting desired projects. The
approach outlined below is only one of many possible variations of the evaluation and
selection process.
There are some general principles, however, that apply to any effective evaluation and
selection process:
● The deciding body must have enough information about the merits of the project's
Business Case and the viability of its Proposed Solution to make a meaningful
evaluation;
● The competing projects' merits must be evaluated and compared using a

consistently applied methodology;
● The selection process must take into consideration the project's fit with the
organizational mission and strategic plan.
List of Processes
The three major processes in this phase of the

project management lifecycle are: Develop
Project Proposal, where the initial Business
Case is made, and initial project parameters are
defined; Evaluate Project Proposals, where
cost/benefit analysis is performed, and the projects are evaluated against a set of specific
business criteria; and Select Projects, where a consensus is reached on the project's feasibility
and relative importance in comparison to other proposed projects, and a decision is formally
made regarding the Project Proposal.
List of Roles
The following roles are involved in carrying out the processes of this phase.
● Project Sponsor
● Project Proposal Team
● Project Selection Committee
● List of Deliverables
DEVELOP
PROJECT
PROPOSAL
The initial Business Case for the project is formulated, and all information required for
Develop
project selection is formalized in the Proposed Solution. A proposal for Business
a project mayCase come
from any place in the Performing Organization, but someone must be identified as
The Business Case is one of the
the "owner" of the proposal, and must serve as Project Sponsor, at least through the
defining documents of the project, providing
evaluation and selection process. information necessary to support the decision to
launch the project at the end of Project
The Project Sponsor may be in executive management, in a specific
Origination and to continue the project in
functional programme area, or a representative of the Customers or the Consumers
subsequent phases.
within the Performing Organization.
It is also important to note that, in order to define project parameters with adequate
precision, Initiation and Planning will require substantial resources, and initial estimates should
reflect that fact. Before presenting the proposal for evaluation, the Project Sponsor should have
the intimately familiar with its Business Case reviewed by the people most imperatives—
Customer Decision-Makers.
Choosing the right projects, which support the organization's mission and assist with the
implementation of its strategic plan, becomes a crucial activity, starting with an objective
evaluation of proposed initiatives. Evaluate Project Proposals presents an approach to rating
competing proposals in a methodical, impartial fashion; the results are indispensable to the
success of the subsequent project selection process.
EVALUATE
PROJECT Develop Proposed Solution
PROPOSAL A Proposed Solution starts
with the summary of the business need
(abstracted from the Business Case),
Organizations may implement this process in adefines variety of ways
the optimal — from
solution relying
to address
on unilateral decisions of a chief executive or designee, tothat convening
need, and describes cross-functional
how the
deliberative councils. The tasks presented below aresolution designed
fits into tothe emphasize
organization's the
components of an effective proposal screening andstrategic evaluation
plan. Theprocess,
Proposed and not to
Solution
prescribe a particular format required to reach a desiredshould objective.
include an The frequency
evaluation of an
of all
organization's evaluation/selection process may be dictated alternatives
by many factors, includinga the
considered, and
size of the proposed projects, the vacillations of the budgetjustification
cycle, ofand
the solution selected.
the occurrence of
external mandates and internal imperatives.
Screen Project Proposals
Before a great deal of effort is expended on rating, prioritizing and selecting presented
SELECT
projects, it may be useful to screen competing proposals by asking some important questions,
Present Project Proposals
such as: PROJECTS
Because the quality and level of detail among
Does the project support the organization'stypical mission? Does
Project Proposals the
tends Proposed
to vary Solution
a great deal, it is
align with the organization's strategic plan/technical architecture?
beneficial Is
to allow the Project Sponsor tothere
make a case an
available/plausible funding source for this effort? for the Does
projectthe
in person. Thiscost/benefit
project's also allows decision-
analysis
makers to ask questions and gather additional
justify its initiation? information on the spot, without resorting to more
formal —and slower — channels of communication.
Once the Project Proposals have been uniformly and objectively rated, it is necessary to
prioritize them to reflect how they compare to one another in various aspects, including
supporting current organizational priorities, the mission and the strategic plan. At that point in
the Select Projects process, a decision can be made as to how many of the top-rated proposals
can be accommodated by the agency's budget, resources, and ability to absorb organizational
change. Whether the project is approved, declined, or sent back for additional information, the
Project Sponsor must be notified, and the decision documented.
Choose Projects
Prioritize Project Proposals
A committee of executives from the Performing Organization usually makes project
Quantitativedecisions.
selection ratings derived
Eventhrough
if thethe evaluation
Commissioner or other agency head (Chairman,
process make the prioritization process a simple matter of
Director, etc.) makes the final decision, a Project Selection Committee generally
sorting the higher scores to the top. However, it may be useful
reviews and develops recommendations. It may be useful to, once again, invite the
to review the generic rating criteria once again and decide if
Projectmeasurements
some additional Sponsor to are make a presentation to the Committee and answer questions.
needed.
The Project Selection Committee must choose projects that, in combination, will
provide the best investment for the Performing Organization. The Committee
considers competing priorities in determining what is best for the whole. All
proposals must be evaluated in the context of other proposals, current projects and
ongoing operations in order to set priorities and determine resource availability.
This process may be accomplished through discussion and vote, or the Committee may
use specific tools (software, spreadsheets, etc.) designed to facilitate comparison of the
proposals. The projects chosen as a result of this process may not necessarily reflect what is
best for an individual employee or a single work unit. Sometimes a lower-priority project will be
approved simply because it is low-risk or low-cost, and can deliver needed benefits or services.
Sometimes a project can be undertaken because it needs few resources, and can be
performed while larger initiatives are delayed.
Notify Project Sponsors
Once the decisions have been made, it is imperative to document them and to explain
their rationale to the Project Sponsors and other Stakeholders.
One of three outcomes can occur:
● A decision is made to proceed with the project.
● A decision cannot be made on the project without some additional information.
● A decision is made to decline the proposal.
In all three cases, the same Proposal Decision Notice can be used to document and
communicate the decision.
Deliverable Proposal Decision Notice — a formal document indicating one of the three possible
outcomes of the Project Selection process: proposal approval and project selection, request
for additional information, or proposal declination.
The main measurement of success for Project Origination is the consensus of the
Performing Organization Management that the projects were weighed fairly, and that the ones
with the most compelling Business Case received a green light.
Let's take a closer look at what's important in each one of these stages:
Initiation: In this first stage, the scope of the project is defined along with the approach to be
taken to deliver the desired outputs. The project manager is appointed and in turn, he selects
the team members based on their skills and experience. The most common tools or
methodologies used in the initiation stage are Project Charter, Business Plan, Project
Framework (or Overview), Business Case Justification, and Milestones Reviews.
Planning: The second phase should include a detailed identification and assignment of each
task until the end of the project. It should also include a risk analysis and a definition of a
criteria for the successful completion of each deliverable. The governance process is defined,
stakeholders identified and reporting frequency and channels agreed. The most common tools
or methodologies used in the planning stage are Business Plan and Milestones Reviews.
Execution and controlling: The most important issue in this phase is to ensure project
activities are properly executed and controlled. During the execution phase, the planned
solution is implemented to solve the problem specified in the project's requirements. In product
and system development, a design resulting in a specific set of product requirements is
created. This convergence is measured by prototypes, testing, and reviews. As the execution
phase progresses, groups across the organization become more deeply involved in planning
for the final testing, production, and support. The most common tools or methodologies used
in the execution phase are an update of Risk Analysis and Score Cards, in addition to
Business Plan and Milestones Reviews.
Closure: In this last stage, the project manager must ensure that the project is brought to its
proper completion. The closure phase is characterized by a written formal project review report
containing the following components: a formal acceptance of the final product by the client,
Weighted Critical Measurements (matching the initial requirements specified by the client with
the final delivered product), rewarding the team, releasing project resources, and a formal
project closure notification to higher management. No special tool or methodology is needed
during the closure phase.
Project Management vs. Project Life Cycle
Projects are the way that most new work gets delivered. All projects have certain
characteristics in common.
 They all have a beginning and an end.

 All projects are unique. They may be similar to prior projects but they are unique in
terms of timeframes, resources, business environment, etc.
 Projects result in the creation of one or more deliverables.
 Projects have assigned resources - either full-time, part-time or both.
Projects fall into different categories, decide what type a project is. One example of
categorization is:
● Runner (something we know how to do, easy to plan and estimate, low risk and
easy to execute)
● Repeater (a runner with a difference, something outside the norm)
● Stranger (something we have little experience of but know can be done, harder to
plan and estimate, higher risk and harder to execute)
● Alien (a project nobody has done before, hard to plan and estimate, high risk and
unclear how to execute)
For each project, clarify the measure of success. Which is important?
● On time (schedule)
● On budget (cost)
● Accuracy (quality)
Some people are confused on the difference between project management and the
project lifecycle. It takes both types of work to complete a project successfully. The general
difference is that project management is used to define, plan, control, monitor and close the
project. The work associated with actually building the project deliverables is accomplished
through work that is referred to as the "lifecycle".
Project management is used to build the schedule, but the vast majority of the work in
the schedule is the lifecycle work associated with building the project deliverables. Projects
can be managed using a common set of project management processes.
The thing that makes a project unique is the deliverables that each project builds. For
example, building a bridge is a different type of project that building an IT solution, or building
a new consumer product. The lifecycle describes the activities used to build the deliverables
and is generally unique for each project. Even though all projects are unique, there are still
common lifecycle models that can be used to build deliverables in similar ways.
An example of a lifecycle model is the generic "waterfall". In a waterfall project, you start
off understanding the requirement of the solution, designing a solution, building and testing a
solution and then implementing the solution. Each of these major areas of focus is called a
phase (Analysis Phase, Design Phase, Construct Phase, etc.) What could be easier?
Projects will be successful when the right environmental conditions exist. Always
encourage good practice in planning. Plans are used to manage a project and must be kept up
to date.
Creating an environment that supports success is a major step towards helping your
project teams succeed. Everybody needs to work together and support each other; this
includes customers and suppliers. Make sure everyone understand the organizations' strategy,
business plan and current priorities. Ensure people know where their business unit or
department fits into the plan. Find out whether project managers follow a consistent structure,
process and methodology. Consistent does not mean ridged.
If you answer no to any of the following questions then your environment does not fully
support success:
● Has the organizations' strategy, business plan and current priorities been cascaded
down?
● Do people know how they will help the organization achieve its strategy and
business plan?
● Is project management taken seriously in your organization?
● Are people encouraged to challenge the project management methodology to

improve it?
If this is not the case then you need to do something about it. Good estimating means
allocating the right amount of time and effort to projects. Link estimation is to categorization
and risk. Many organizations under achieve in the area of risk management.
Project
Implementation
Plan
THE PLANNING PROCESS is critical to the Steering Committee’s
success. The major advantage in conducting an assessment is that the
community’s realities drive development of the plan. The assessment helps point
the Committee towards the goals they want to achieve. Once the goals are
spelled out, the Steering Committee can develop the objectives and activities to
meet each goal.
The planning process is critical to the Steering Committee's success primarily because
it provides all participants with a framework for action. It sets the Committee's direction and
helps in identifying and selecting options, deciding on actions, and motivating participants.
Planning can help law enforcement, community-based social service agencies, schools,
citizens' groups, and other interested community residents to establish a common mission and
common priorities, and minimize parochial perspectives in favor of broader goals. A frequent
argument against planning is: "We don't have the time. We have too much to do." Planning
does take time.
Objectives are specific concrete statements of

what needs to be accomplished to attain a goal and
Setting Goals and Objectives include statements of how results will be measured.
Goals and objectives
established by the Steering Committee should be clearly linked to the data gathered during the
assessment and to the priority issues identified by the Committee. The data from the
assessment will establish the baseline against which progress will be measured.
Thus, once the priority issues have been established and the target population
identified, the following steps should be taken:
● Develop goals (three to five).
● Develop objectives for each goal.

● Develop activities for each objective.
● Identify target group (youth, family members, community residents, etc.) for activities.
● Identify the agency responsible for the activities.
● Identify potential barriers and a plan to overcome the barriers.
● Identify the contact person responsible.
● Determine start and completion dates
Goals should determine the overall direction of efforts and not the activities that will be
implemented. Setting Goals First, the Steering Committee should develop several (three to
five) goal statements, based on the identified priority issues, to address during implementation
of this project. Goals are general statements of desirable outcomes. In stating the goals, be
careful to describe the desired end and not the means to the end.
That is, goals should determine the overall direction of efforts and not the activities that
will be implemented. Remember that goals are general over-arching statements that will guide
the project.
The following are a few examples of how to state a goal:
● Reduce gang-related violent crime in the target area.

● Alleviate community residents' fear of gang activity.
● Reduce targeted youth gang members' rates of school failure and poor academic
performance.
Activities and Services
The activities and services for each objective indicate the tasks to be undertaken to
achieve that objective and should be an appropriate mix of intervention, suppression, and
prevention activities and/or services. Services provided to gang members must be age and
developmentally appropriate. Each activity must be related to one or more of the Model's five
core strategies.
The following are a few examples of how activities and services might be stated:
● Train and place 25 youth in jobs in first year of project.
● Provide anger management class to project youth.
● Provide joint police/probation patrols of hot spots during peak hours.
● Offer three hours a week of tutoring in math and reading to each school age youth in the
project.
● Provide training for employers for working with target population.
● Make participation in job training a condition of probation.
● Inform parents of target youth of their child's gang affiliation.
● Provide family counseling to target youth and their families.
● Institute community/parent patrols during school and athletic events and neighbourhood
celebrations.
● Initiate tattoo removal programme.
● Modify school policies as necessary to promote academic achievement of target

population.
Implementation Planning and Programme Objectives Tools
These Implementation Planning and Programme Objectives tools are for use by those
who are planning on or are already implementing the Mpowerment intervention. These tools
can serve as a "living document" or ongoing record of plans, accomplishments, and timelines
between the staff in the agency funded to conduct the intervention and their CDC Programme
Project Officer.
Technical assistance personnel can use the tool to assist implementing agencies with
planning and conducting the intervention. These two tools or templates are to be used together
as one tool in a two-step planning process, beginning with the development of programme
objectives (Programme Objectives tool), followed by development of specific plans for
accomplishing the key intervention tasks and activities (Implementation Planning tool). The
Programme Objectives tool is a worksheet to use in developing programme objectives using
the CDC SMART objectives (i.e., specific, measurable, achievable, relevant, time-based)
model.
Specific SMART objectives should be developed for each of four areas of intervention
practice: 1) initial, 2) early, 3) intermediate, and 4) ongoing activities. Example SMART
programme objectives for each of the programme activities areas (initial, early, intermediate
and ongoing) include:
Initial: February 15, 2005, our Mpowerment Project will have signed a lease on project
space.
Early: By June 15, 2005, our Mpowerment programme will have recruited 20 Core
Group members from the social networks of African American, Latino,
Asian Pacific Islander and white gay men, ages 21-30, in this community (name of project
catchment area) and held it first meeting.
Intermediate: Starting May 15, 2005, by December 15, 2005, our Mpowerment project
will have held one M-group every two weeks through the week ending December 18, 2005.
Ongoing: Discuss informal outreach (including success stories and challenges/barriers)

during Core Group meetings at least once/month to encourage Core Group members to
engage in conversations with their friends about safer sex and HIV prevention.
Steps for using the tools:
● Form a team to work on Mpowerment programme planning and implementation.

● Watch the Mpowerment overview video and training tapes
● Review, in detail, the Mpowerment manual and M-group training manual.
● Review, in detail, the implementation planning and programme objectives tools.
● Hold a meeting to discuss how these tools may need to be adapted or tailored to meet
your programme needs. Remember that, when adapting or tailoring the Mpowerment
intervention, the guiding principles, operating structure, programme components and
core elements (CDC Procedural guidance), and their key characteristics must be
maintained.
● Revise content of these planning tools as needed.
● Consult with Mpowerment TA providers and original researchers as necessary.
● Hold a meeting, or series of meetings, to develop programme objectives (the
Programme Objectives tool) and specific plans and timelines for completing each of the
key tasks and activities of your Mpowerment programme (the Implementation Planning
tool).
● Begin implementing Mpowerment. Document progress and completion of tasks and
activities.
Periodically hold team meetings and review progress in implementing Mpowerment. Make
adjustments to programme plans/these tools as needed. Document revisions.
Developing an implementation plan and time frame may vary based on community size
and interest and a project's budget. Each community must adapt these steps to its Project's
goals, funding for the programme, planning needs, and level of interest generated within the
community.
Implementation Project Plan
To respond to the DHS NPG mission areas, priorities and capabilities, the development
of common operating picture based in geospatial technologies is envisioned as a unifying
foundation.
The Kansas City region has made considerable investments in this area over recent
years and the recent development of a strategic plan for geospatial and data server
requirements has brought focus to the needs of the region.
This project is designed to fill in the pieces of puzzle to complete the foundational
common operating picture for the region. Many elements are working well, but often in
stovepipes.
Therefore, this project is seen as essential to leverage and enhance the prior
investments in a regional fashion to address the common goals of prevention, protection,
response and recovery. The project plan covers areas of data collection, data accessibility and
training and is presented in a phased approach in order to allow for considerable flexibility
based upon the funding allowances in the upcoming budget year for this area of work.
Investment Areas Supported by this Project
This project is designed to support multiple investment areas.
Key investments support areas are as follows:
● Expand Regional Collaboration
● Implement NIMS
● NIPP/Critical Infrastructure
● Planning
● Interoperable Communications
● Information Sharing
● Training and Exercise
National Priorities Supported by the Project
● Expanded Regional Collaboration
● Implement the NIMS and NRP
● Implement the NIPP
● Strengthen Information Sharing and Collaboration
● Strengthen Interoperable Communications
● Catastrophic Planning
Target Capabilities Supported by this Project
● Planning
● Communications
● Risk Management
● Community Preparedness and Participation
● Information Gathering and Recognition of Indicators and Warnings
● Intelligence Analysis and Production
● Intelligence/Information Sharing and Dissemination
● Critical Infrastructure Protection
● Restoration of Lifelines
● Economic and Community Recovery
● Onsite Incident Management
● Emergency Operations Centre Management
● Critical Resource Logistics and Distribution
● Public Safety and Security Response
● Citizen Protection/Evacuation and/or In-place protection
● Emergency Public Information and Warning
● Mass Care (Sheltering, Feeding and Related Services)
Geographic and Demographic Area of this Project
This project is designed to encompass the entire area served by the Mid-America
Regional Council focused on the Kansas City metropolitan area and consisting of
Leavenworth, Johnson, and Wyandotte counties in Kansas; and Cass, Clay, Jackson, Platte,
and Ray counties in Missouri.
Project Approach
The proposed project will consist of three distinct phases, which may run sequentially or
simultaneously depending on resources and funding. The goal of this project is to create an
environment of mutual aid and collaboration with respect to leveraging technology for
emergency management and homeland security in the Kansas City region.
The result of this project will be a solid and functional prototype with scalability and
flexibility encouraging stakeholder involvement and effective usage.
The phases include:
● Data collection
● Data accessibility
● Training
Data Collection
The region already has a tremendous amount of data and the status of available data
has been documented in the data survey summary accomplished in the development of the
Geospatial Strategic Plan. However there are few layers for which a seamless layer exists for
regional use and planning to support emergency management and homeland security. The
data collection effort focuses on those layers that are most critical to these functions. These
include:
● Critical Infrastructure
● Master Addressing (completion and integration)
● Natural Hazards
● Hazardous Materials
Collecting the data alone does not present a sustainable solution to meeting the
regional needs and therefore the proposed data collection phase also includes:
● The establishment of minimum standards for the priority layers
● The assignment of data stewards
● The creation of a sustainable maintenance plan for each priority layer
Other important aspects of the standards are data accuracy, completeness, and
attribution requirements. The intention of this project is to establish minimum standards
necessary for the priority data layers and set a foundation for future standards development
with respect to geospatial data.
To do this the project will focus on the following steps:
● Convene a data standards committee
● Develop standards for data development and sharing (data models, nomenclature, data
types, accuracy, conversions, etc)
● Develop metadata standards
Data Accessibility
The second phase will focus on the accessibility of the data collected. Data access will
be addressed via a number of methods including:
● Establishing a data warehouse server to support a stable, interim solution to house the
comprehensive critical data layers described under Data Collection.
● Create a protected download environment for direct access to the comprehensive critical
data layers.
● Develop Common Operating Picture/ WebEOC user interface to provide efficient and
readily available use of the base data for the region and the critical data sets.
● Create web services to make the critical data layers accessible to other existing systems
used to support emergency management and homeland security in the region.
Establish a Data Warehouse Server
There are many factors that will affect the appropriate location and management of a
data warehouse for the Kansas City region. These include, but are not limited to:
● Existing infrastructure
● Politics
● Support resources
● Integration requirements
Create a Protected Download Environment
Most of the Kansas City region counties and jurisdictions have an FTP server
implementation, but it is limited to their own use. There is no centralized FTP infrastructure
that connects the members directly. FTP is viewed as an ideal electronic mechanism for
exchanging digital data and can be facilitated in a protected environment. A centralized FTP
server, would be implemented as part of the central data warehouse infrastructure, and would
be an easy and ideal solution to offer for designated members of the Kansas City region. The
centralized FTP servers can then performance as either a one-to-one data exchange route or
as a limited secondary data distribution.
Develop COP/ WebEOC User Interface
This project envisions the creation of a common web interface accessible through
WebEOC with routine tools for navigation, query, display, print and download. The project
will leverage the investments made in the region with both the WebEOC ESRI based
products to deliver a user-friendly and consistent interface for analysis and decision support.
To accomplish this, the project will:
● Define the organizational structure for implementation management.
● Implement a phased system development methodology focused on the first phase of a

functional pilot system.
Create Web Services
As a companion to the online mapping tool, a web service can be created to facilitate
access from other systems as well that are employed during emergency operations. In its
simplest definition, a web service is a self-describing, self-contained, unit of application that
provides functionality to other applications through an Internet connection.
Other applications access the web service via ubiquitous web protocols and data
formats, such as HTTP and XML. The web service's main role is to serve data to other Internet
client applications. The programming capabilities are infinite.
Key examples are:
● Feed updated data automatically to other subscriber applications
● Serve data to portable devices via a SOAP interface
● Provide a programmatic and direct back-door entry to the central data warehouse for
other applications with specific requirements (high-security for an application like TEW
— Terrorist Early Warning system)
● Receive updated data in real-time.
● Integrate geospatial data import functionality in other web service aware applications like
ArcMap, Web EOC, and CATS
The capability of integrating the "right data" via a web service for compatible
applications like ArcMap, WebEOC, and CATS will allow similar functionally to ESRI's
Geography Network. With this capability, emergency managers and all GIS users will have
seamless and transparent access to the data for real-time analysis.
Training
The final phase of the project will focus on training. Training can take on a variety of
different forms, one being facilitation of information sharing between the emergency
management and the geospatial communities in the form of a geospatial workshop series,
inviting both emergency and GIS representatives to workshops to review data requirements
and possible application of geospatial systems for homeland security and emergency
management.
To accomplish the goal of increasing GIS awareness and usage within the Homeland
Security communities the project will:
● Expand the existing MARC Public Safety and Emergency Services Outreach and
Training Plan to include the application of geospatial technology to address homeland
security and public safety needs
● Establish on-going GIS training for officials involved with homeland security and
emergency management-related activities
● Organize a semi-annual GIS workshop for homeland security and emergency

management agencies to improve technical skills and capabilities, enhance inter-
organizational communication, and facilitate the use of available data
Stakeholder Collaboration Process
Geospatial data exists in many locations and levels across the region but is often only
identified and used by one entity or jurisdiction. This project will engage stakeholders in a
collaborative process for the collection and management or emergency management related
geospatial data. Together, a list will be compiled of these data sets at a regional level to
support, the common operating picture. This initiative is straightforward but is very broad in
participation and to be successful must rely on jurisdictions and stakeholders to actively
participate to compile this information.
Anticipated Impacts of this Project
Accurate, comprehensive, and accessible geospatial information plays an important role

in protecting the public from natural and man-made threats. Geographic Information System
(GIS) technology and geospatial data can be used to address a number of emergency
management and homeland security-related issues.
Specific examples include: the identification and mapping of potential natural and
human induced threats, the assessment of how vulnerable people, buildings, infrastructure,
and future development is to the damaging forces of natural or human induced hazards, and
the modelling and simulation of disaster scenarios.
Hazardous Materials
Hazardous materials accidents are listed as one of the hazards facing the Kansas City
region. Local Emergency Planning Committees (LEPC) deal specifically with hazardous
material response planning in the Kansas City region there are currently four committees
within the region. In managing and developing this data layer, it will be imperative to involve
the LEPCs. Though the storage of hazardous materials does not constitute a CBRNE threat; it
may require the same response in the case of an incident.
Ability of this Project to Decrease/Mitigate Risk
Geospatial information increases the capacity for risks to be assessed and prepared for,
assets to be positioned and managed, people to be warned, personnel to be deployed,
damage to be assessed, rescue efforts to be targeted and restoration activities to be tracked.
Geospatial technology allows for multiple sets of information to be intersected to correlate
them and find patterns that may lead to improved strategies for prevention, response, and
mitigation.
Perhaps the most important role of

geospatial information and geospatial
technologies is that of information integrator,
providing both a canvas upon which to post
information from a wide variety of sources and
the tools to combine it, visualize and make
sense of it. In this way, geospatial capabilities
are a key component to decreasing or mitigating
risk by providing the common operating
picture needed by emergency personnel
so that everyone sees the whole situation
simultaneously and can develop an appropriate,
coordinated response. In addition. geospatial
technology allows aspects of that common
operating picture to be shared with the media in order to prepare the' public, keep them
informed, and seek their assistance.
Homeland Security Risks of not Executing this Project
There is no significant homeland security risk of not executing this project. However, the
inability to access or slow access to data presents serious challenges in all four primary DHS
mission areas of prevent, protect, respond and recover. The lack of a common operating
picture can result in inconsistent or conflicting perspectives during an emergency event.
Additionally, the lack of interoperability or data exchange can limit response times and
even at times prevent response from occurring due to lack of information regarding true
response requirements.
Potential Project Implementation Challenges
The potential implementation challenges for the project are fairly familiar ones.
Obviously, appropriate funding is a challenge.
Given the multi-faceted nature of this project, it could easily tangent into different areas
of need. Additionally, due to the numerous stakeholders that would be directly involved there
will undoubtedly be some political challenges as well. Simply the selected long-term location
for the data warehouse or the selected data standards could become political issues.
Another challenge that is more specific to this project is the lack of active
communication between the subject matter experts and the geospatial sciences experts within
the region.
This "disconnect" has permitted some divergence in perception of the most critical data
and system needs. Finally, as the reliance on the geospatial data infrastructure increases
there might be limitations in the number of available and adequately trained resources to
effectively manage the environment.
Risk Mitigation Plan for Anticipated Project Challenge
With respect to funding challenges, there are many methods to consider beyond
Federal funds to further the project objectives.
These include:
● Leveraging use of national standards
● Academic partnerships
● Public-Private partnerships
● Increasing level of ownership
Finally, with respect to resources, there are some additional risk mitigation steps that
can be implemented include:
Implementation steps to be considered include:
● List of GIS professionals that can provide support, include experience, availability and
contact information
● List of GIS resources available — laptops, licenses, printers etc.
● MOUs between city, county and states including involvement in the Emergency
Management Assistance Compact (EMAC)
● Investigation of Federal guidelines affecting resource sharing/management for

emergency response
● Open lines of communication with and coordinate with larger regional groups
Project Management Team
This project will be managed by MARC and the Regional Homeland Security
Coordinating Committee. An advisory board will be established with lead technical
professionals for the states, counties and jurisdictions identified as key stakeholders in the
project.
Additional Funding Resources
There have been alternative, less tangible funding sources that have been identified
and can support this project effort.
● Leveraging use of national standards

● Academic partnerships
● Public-Private partnerships
● Increasing level of ownership
High Level Timeline
Phase One and Two of this project, data collection and data accessibility respectively,
can begin simultaneously. Phase One is anticipated to range in duration from nine to twelve
months depending on factors such as availability of existing data, resources to input non-
existent data primarily.
Phase Two of this project would be estimated to range in duration from six to twelve
months. The factors most influencing this phase will be ability to leverage existing servers, the
purchase time for new equipment and/or software, and configuration of new infrastructure.
Phase Three is dependent on the cease of Phase Two but not Phase One, meaning
that additional data can still be in the process of collection or assimilation when training
ensuesso long as enough data has been amassed in the interim data warehouse to support
the designed training exercises. The anticipated duration of Phase Three is three to six
months primarily dependent on availability and scheduling of trainers and trainees.
Project
Integration
Knowledge
The Project Integration Management Knowledge Area includes the processes and activities
needed to identify, define, combine, unify, and coordinate the various processes and project management
activities within the Project Management Process Groups.
Part II
A
"A Guide to the Project Management Body of Knowledge" also known as PMBOK, is an
exhaustive compilation of recommended project management practices designed to
complement the test taker's years of actual project management experience. This booklet was
created as a guide to PMBOK that will help potential test takers understand one of its most
critical concepts, project integration management. PMBOK, projects are made up of a series of
action known as processes; the third edition of PMBOK identifies 44 distinct processes that
may be implemented for a given project. It divides these processes into five process groups
based on the similarity of their activity.
These activities are:
● Initiating
● Planning
● Executing
● Monitoring and Controlling
● Closing PMBOK also classifies processes according to the area of project
management knowledge to which they apply:
● Integration management
● Scope management
● Time management
● Quality management
● Human resources management
● Communication management
● Risk management
● Procurement management
Inputs
An input may be a document such as a contract or a value such as the corporate culture;
regardless of the nature of the input, its importance lies in the effect that it has on the project
management process.
Tools and Techniques
Tools and techniques are the "equipment" used in the project management processes to
develop the desired outputs. They vary in nature and substance; computer software, a formal
project management methodology and subject matter expertise can all be utilized as tools or
techniques of project management. Many of the tools and techniques are utilized in more than
one process over the course of project.
Outputs
The product of a project management process is known as an output; PMBOK describes

an output as "A product, result, or service generated by a process...". Often an output from one
process becomes an input for another process; the project charter, for example, is the output of
the Develop Project Charter process and an input for the Develop Preliminary Scope Statement
process. This creates additional overlapping that further unifies the various processes.
The Initiating Processes
The initiating processes of project integration management are Develop Project Charter
and Develop Preliminary Scope Statement.
Develop Project Charter
It is the mechanism for documenting a project's origin, purpose and relationship to

normal agency functions. Implementing this process results in a document that legitimizes the
project and helps generate buy-in from the stakeholders, a group that may include employees,
customers, legislators and others.
Regardless of the impetus for a project, it is the project sponsor's responsibility to

authorize the project via a project charter. The sponsor should use the charter as a vehicle for
conveying as much information about the project as possible to the project team. The sponsor
should also use the charter to set the priorities for scope, schedule and cost to guide the team's
decision making throughout the project.
Some of the scope and resource information that can be included in a project charter
are:
● Objectives and deliverables
● Customers and their needs
● Business requirements
● Stakeholders
● Project manager
● Key project team members
● Project deadline
● Staff effort limit
● Budget
Although the charter should be the first significant document created for a project, it may
be necessary to modify or revise it as the project develops. This is particularly true if there is a
legitimate change in scope or deliverable; if, for example, the project deliverable is expanded
from a brochure to a booklet, the charter must be revised to reflect this. Otherwise, it may later
appear that the project team did not notify the sponsor of its decision to change the size of the
deliverable.
Develop Preliminary Project Scope Statement
The Develop Preliminary Project Scope Statement process can help prevent scope
creep by clearly setting the parameters for the project. This is a process many state agencies
regularly utilize for their computer system-related projects but that they may not implement for
projects that deal with policy or procedural changes.
However, those types of projects can also benefit from establishing in writing the
expected range and depth of the project work. The Develop Preliminary Project Scope
Statement process should be implemented by the project team in response to the objectives
outlined by the sponsor in the project charter. Whereas the sponsor identifies the desired
objective and available resources in the charter, the project team uses this process to create a
document that explains how the team will accomplish the objectives.
Detail and clarity of the scope statement are crucial. Specific systems, processes and
facilities should be listed. Cumulative or generic terms can be used as long as there is a
universal understanding of the limits of the statement.
Once established, the scope cannot be changed without evaluating the ramifications of
the change and approving the new scope. The skill sets of the team members and the plans of
the team are centered on the scope as defined in the charter. Additions to scope may require
tasks that the team is not equipped to handle and that will affect the project timeline and
deliverables.
The Planning Process
The planning process of project integration management is Develop Project

Management Plan.
Develop Project Management Plan
In the Develop Project Management Plan process the project team pulls together the
initial documents that will be used to execute, monitor, control and close the project. These
documents, which are collectively known as the project management plan, will be inputs for
all of the remaining processes so it is important that a project team devotes enough time to
producing a plan that will provide sufficient direction for the project.
The project team must familiarize itself with the provisions of the charter and the
preliminary scope statement in order to determine what type of information should be included
in the plan. The project management plan can be as formal or informal as the organization or
project requires it to be. Some agencies develop standardized formats that they use, with
necessary modifications, for every project they undertake; other agencies may use a variety of
formats.
The agency's corporate culture, familiarity and comfort with project management
methodology and information generating processes are factors that influence how it produces
its project management plans. The project management plan builds upon the purpose outlined
in the preliminary scope statement.
It explains how the project will be executed, what resources have been obtained for the
project and how long it will take to execute the project. It should also contain change control
procedures for identifying issues and events that may require preventive or corrective action
and guidelines for responding to those events. Given that the project will end at some point, the
plan should also contain provisions for closing the project,
The Executing Process
The executing process of project integration management is Direct and Manage Project
Execution.
Direct and Manage Project Execution
Direct and Manage Project Execution is the process that coordinates the people and
resources that have been allocated to a project with the tasks needed to complete the project.
With a well-crafted plan in hand, the project manager develops the project team, protects the
project scope and ensures that the completed product meets the customer's needs.
The project manager directs and manages the project team by providing it with
information about the project including quality, scope, cost, and schedule expectations.
The project manager should also:
● Set boundaries for areas of responsibility and authority
● Develop feedback mechanisms
● Discuss inspection/reviews
Communication is a critical factor in successfully directing and managing the project

execution. Each team member needs to understand how his or her tasks affect the overall
project and be aware of the proper way to report concerns and issues. Every team member
should be able to view the important project documents such as the charter, scope statement
and project plan.
The Monitor and Control Processes
The monitor and control processes of project integration management are Monitor and
Control Project Work and Integrated Change Control.
Monitor and Control Project Work
Monitor and Control Project Work is the process that provides a project team with the
information it needs to determine whether or not the project is on track. It also makes the team
aware of potential changes and how they may affect the project management plan. It helps
them answer the question, "Is the proposed change corrective, preventive, or a defect repair?"
This in turn allows the team to determine the appropriate response to the proposed request.
Integrated Change Control
This ensures that valuable information that was developed during the project is not lost;
future projects may benefit from information captured through this process and retained. This
process is also a mechanism that allows the project team to identify and revise a baseline for
its project. Items such as project cost estimates, schedule activity sequences, dates, resource
requirements and analysis of risks responses may need to be revised or reallocated as a result
of the implemented change.
The Closing Process
The closing process of project integration management is Close Project. It allows the
sponsor to formally accept the project and provides a procedure for transition of the product
from project deliverable to operational use. It should also result in the creation of a library or
archive of project documentation that can be used for future projects.
Close Project provides documentation of any changes that were made throughout the
project lifecycle and helps the team and stakeholders determine why corrective action was
taken. Documenting the process also helps an agency determine final costs, avoid re-inventing
the wheel and reduce the chance of making the same mistakes again.
Contract Closure
Contract should always detail terms and conditions to operate the project and
acceptance criteria. The outcome of this process provides steps to close those terms and
conditions in formal way. Project Integration Management includes the processes required to
ensure that the various elements of the project are properly coordinated. It involves making
trade-offs among competing objectives and alternatives in order to meet or exceed stakeholder
needs and expectations. While all project management processes are integrative to some
extent.
Project Integration Management
Project integration management is the process of ensuring that the various aspects of a
project are coordinated with each other. The three major categories of project integration
management are: Project Plan Development, Project Plan Execution, and Overall Change
Control.
Project Plan Development
The project plan is necessary to guide the project through its life cycle. The project plan
develops the assumptions and limitations of the project. It also provides documentation of the
decision-making made throughout the project. The project plan facilitates the communication
process throughout the organization. The project plan defines the role of key management
personnel, provides a baseline benchmark measuring control and progress towards
milestones.
The outputs of the project plan are:
● A project charter
● A comprehensive description of the project strategy and methodology — How is the
project going to be implemented.
● A clear and precise statement of scope.
● A preliminary work break down schedule.
● Cost estimate
● A schedule of events including milestones.
● Assignment of responsibilities.
● Performance benchmarks.
● Key staff required for successful implementation.
● A comprehensive risk assessment and statement.
● Scope change processes.
● Communication protocol.
● Monitoring process.
● Applicable standards and specifications of outputs.
● Stated limitations and "off limit" issues.
● A list of open decisions and pending decisions.
Project Plan Execution
This is how projects are implemented. Using the project plan, organization policies,
supporting detail, and if necessary corrective actions. The project team will implement the
project. Implementation is not something that will happen naturally. It requires the project
manager and the project management team to have management skills, knowledge, and
discipline.
Overall Change Control
Change control is extremely important to the success on any project. Changes in scope
can involve schedule changes, cost changes, quality control changes, risk changes, and
contract administrative changes. Effective change control requires the project manager and
team members to understand the project. Change control requires adjustments to the project
plan. Nothing occurs in a vacuum with in a project. There is always a cause and effect. Good
project managers adjust their plans as changes occur.
B
Project
Planning
and
Short-Term Capacity Planning
In the short term, capacity planning concerns issues of scheduling, labor shifts, and
balancing resource capacities. The goal of short-term capacity planning is to handle
unexpected shifts in demand in an efficient economic manner. The time frame for short-term
planning is frequently only a few days but may run as long as six months.
When not used abusively, most workers appreciate the opportunity to earn extra wages.
If overtime does not provide enough short-term capacity, other resource-increasing alternatives
are available. These include adding shifts, employing casual or part-time workers, the use of
floating workers, leasing workers, and facilities subcontracting.
Finally, the firm may attempt to modify demand. Changing the price and promoting the
product are common. Another alternative is to partition demand by initiating a yield or revenue
management system. Utilities also report success in shifting demand by the use of "off-peak"
pricing.
Capacity-Planning Techniques
There are four procedures for capacity planning; capacity planning using overall
factors, capacity bills, resource profiles and capacity requirements planning. The first
three are rough-cut approaches that can be used with or without manufacturing resource
planning systems.
Bills of capacity are a procedure based on the MPS. Instead of using historical ratios,
however, it utilizes the bills of material and routing sheet. Capacity requirements can then be
determined by multiplying the number of units required by the MPS by the time needed to
produce each. Resource profiles are the same as bills of capacity, except lead times are
included so that workloads fall into the correct periods.
Capacity requirements planning are only applicable in firms using MRP or MRP II. A
failure to understand the critical nature of managing capacity can lead to chaos and serious
customer service problems. If there is a mismatch between available and required capacity,
adjustments should be made. However, it should be noted that firms cannot have perfectly-
balanced material and capacity plans that easily accommodate emergency orders. If flexibility
is the firm's competitive priority, excess capacity would be appropriate.
Manufacturing Planning and Control
Manufacturing planning and control address decisions on the acquisition, utilization and
allocation of production resources to satisfy customer requirements in the most efficient and
effective way. Typical decisions include work force level, production lot sizes, assignment of
overtime and sequencing of production runs. Optimization models are widely applicable for
providing decision support in this context.
Framework
There are a variety of considerations that go into the development and implementation of
an optimization model for manufacturing planning and control. The optimization models
described in this substance treat demand as being known; as such they must be periodically
revised and rerun to account for forecast updates.
A key choice is what planning decisions to include in the model. By definition,
production-planning models include decisions on production and inventory quantities. But in
addition, there might be resource acquisition and allocation decision, such as adding to the
work force and upgrading the training of the current work force.
Planning is typically done in a rolling horizon fashion. A plan is created for the planning
horizon, but only the decisions in the first few periods are implemented before a revised plan is
issued. Indeed the plan must be periodically revised due to the uncertainties in the demand
forecasts and production. For instance, a firm might plan for the next 26 weeks, but then revise
this once a month to incorporate new information on demand and production.
Production planning is usually done at an aggregate level, for both products and
resources. Distinct but similar products are combined into aggregate product families that can
be planned together so as to reduce planning complexity.
Aspects of Planning
Event Planning
Event planning is the process of planning a festival, ceremony, competition, party, or

convention. Event planning includes budgeting, establishing dates and alternate dates,
selecting and reserving the event site, acquiring permits, and coordinating transportation and
parking. Event planning also includes some or all of the following, depending on the event:
developing a theme or motif for the event, arranging for speakers and alternate speakers,
coordinating location support, arranging decor, tables, chairs, tents, event support and security,
catering, police, fire, portable toilets, parking, signage, emergency plans, health care
professionals, and cleanup.
Financial plan
In general usage, a financial plan can be a budget, a plan for spending and saving future
income. In business, a financial plan can refer to the three primary financial statements created
within a business plan. Financial forecast or financial plan can also refer to an annual projection
of income and expenses for a company, division or department.
Marketing Plan
A marketing plan is a written document that details the necessary actions to achieve one
or more marketing objectives. It can be for a product or service, a brand, or a product line.
Marketing plans cover between one and five years. A marketing plan may be part of an overall
business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While
a marketing plan contains a list of actions, a marketing plan without a sound strategic
foundation is of little use.
The 8 P’s of marketing strategies are:
● Price: The amount of money needed to buy products

● Product: The actual product
● Promotion: Getting the product known
● Placement: Where the product is located
● People: Represent the business
● Physical environment: The ambiance, mood, or tone of the environment
● Process: How do people obtain your product
● Packaging: How the product will be protected
Content of the Marketing Plan
A marketing plan for a small business typically includes Small Business Administration
Description of competitors, including the level of demand for the product or service and the
strengths and weaknesses of competitors
● Description of the product or service, including special features

● Marketing budget, including the advertising and promotional plan
● Description of the business location, including advantages and disadvantages for
marketing
● Pricing strategy
● Market Segmentation
Measurement of Progress
The final stage of any marketing planning process is to establish targets so that progress
can be monitored. Accordingly it is important to put both quantities and timescales into the
marketing objectives and into the corresponding strategies. Changes in the environment mean
that the forecasts often have to be changed. Along with these, the related plans may well also
need to be changed. Continuous monitoring of performance, against predetermined targets,
represents a most important aspect of this. However, perhaps even more important is the
enforced discipline of a regular formal review.
Performance Analysis
The most important elements of marketing performance, which are normally tracked,
are:
Sales Analysis
Most organizations track their sales results; or, in non profit organizations for example,
the number of clients. The more sophisticated track them in terms of 'sales variance' - the
deviation from the target figures - which allows a more immediate picture of deviations to
become evident.
`Micro-analysis', which is a nicely pseudo-scientific term for the normal management

process of investigating detailed problems, then investigates the individual elements which are
failing to meet targets.
Market Share Analysis
Few organizations track market share though it is often an important metric. Though
absolute sales might grow in an expanding market, a firm's share of the market can decrease
which bodes ill for future sales when the market starts to drop.
Where such market share is tracked, there may be a number of aspects which will be
followed:
● Overall market share
● Segment share - that in the specific, targeted segment
● Relative share -in relation to the market leaders
● Annual fluctuation rate of market share
Expense Analysis
The key ratio to watch in this area is usually the `marketing expense to sales ratio';
although this may be broken down into other elements.
Financial Analysis
The "bottom line" of marketing activities should at least in theory, be the net profit.
There are a number of separate performance figures and key ratios which need to be
tracked:
● Gross contribution<>net profit

● Gross profit<>return on investment
● Net contribution<>profit on sales
Use of Marketing Plans
A formal, written marketing plan is essential; in that it provides an unambiguous

reference point for activities throughout the planning period. However, perhaps the most
important benefit of these plans is the planning process itself.
This typically offers a unique opportunity, a forum, for information-rich and productively
focused discussions between the various managers involved. The plan, together with the
associated discussions, then provides an agreed context for their subsequent management
activities, even for those not described in the plan itself.
Budgets as Managerial Tools
The classic quantification of a marketing plan appears in the form of budgets. Because
these are so rigorously quantified, they are particularly important. They should, thus, represent
an unequivocal projection of actions and expected results.
The marketing budget is usually the most powerful tool by which you think through the
relationship between desired results and available means. Its starting point should be the
marketing strategies and plans, which have already been formulated in the marketing plan
itself; although, in practice, the two will run in parallel and will interact. At the very least, the
rigorous, highly quantified, budgets may cause a rethink of some of the more optimistic
elements of the plans.
Strategic Planning
Strategic planning is an organization's process of defining its strategy, or direction, and

making decisions on allocating its resources to pursue this strategy, including its capital and
people. Various business analysis techniques can be used in strategic planning, including
SWOT analysis, PEST analysis, STEER analysis, and EPISTEL. Strategic planning is the
formal consideration of an organization's future course.
All strategic planning deals with at least one of three key questions:
1. "What do we do?"
2. "For whom do we do it?"
3. "How do we excel?"
Mission, Vision, Values and Strategy
Mission: Defines the fundamental purpose of

an organization or an enterprise, succinctly
describing why it exists and what it does to
achieve its Vision.
Vision: Defines the desired or intended
future state of an organization or enterprise
in terms of its fundamental objective and/or
strategic direction.
Values: Beliefs that are shared among the
stakeholders of an organization. Values
drive an organization's culture and priorities.
Strategy: Strategy narrowly defined, means
"the art of the general". A combination of the
ends for which the firm is striving and the
means by which it is seeking to get there.
Mission Statements and Vision Statements
A Mission statement tells you the fundamental purpose of the organization. It defines the
customer and the critical processes. It informs you of the desired level of performance.
A Vision statement outlines what the organization wants to be, or how it wants the world
in which it operates to be. It concentrates on the future. It is a source of inspiration. It provides
clear decision-making criteria.
Features of an effective vision statement include:
● Clarity
● Vivid and clear picture
● Description of a bright future
● Memorable and engaging wording
● Realistic aspirations
● Alignment with organizational values and culture
Methodologies
There are many approaches to strategic planning but typically a three-step process may
be used:
1. Situation: Evaluate the current situation and how it came about.

2. Target: Define goals and/or objectives
3. Path: Map a possible route to the goals/objectives
One alternative approach is called Draw-See-Think-Plan:
Draw: What is the ideal image or the desired end state?

See: What is today's situation? What is the gap from ideal and why?
Think: What specific actions must be taken to close the
gap between today's situation and the ideal state?
Plan: What resources are required to execute the activities?
An alternative to the Draw-See-Think-Plan approach is called See-Think-Draw:
See: What is today's situation?

Think: Define goals/objectives
Draw: Map a route to achieving the goals/objectives
In other terms, strategic planning can be as follows:
Vision: Define the vision and set a mission statement with hierarchy of goals and
objectives
SWOT: Analysis conducted according to the desired goals
Formulate: Formulate actions and processes to be taken to attain these goals
Implement: Implementation of the agreed upon processes
Control: Monitor and get feedback from implemented processes to fully control the
operation
Situational Analysis
When developing strategies, analysis of the organization and its environment as it is at

the moment and how it may develop in the future, is important. The analysis has to be
executed at an internal level as well as an external level to identify all opportunities and threats
of the external environment as well as the strengths and weaknesses of the organizations.
There are several factors to assess in the external situation analysis:
● Markets
● Competition
● Technology
● Supplier markets
● Labor markets
● The economy
● The regulatory environment
Operational Planning
An operational planning is a subset of strategic work plan. It describes short-term ways

of achieving milestones and explains how, or what portion of, a strategic plan will be put into
operation during a given operational period, in the case of commercial application, a fiscal year
or another given budgetary term. An operational plan is the basis for, and justification of an
annual operating budget request. It draws directly from agency and programme strategic plans
to describe agency and programme missions and goals, programme objectives, and
programme activities.
Like a strategic plan, an operational plan addresses four questions:
1. Where are we now?

2. Where do we want to be?
3. How do we get there?
4. How do we measure our progress?
Operational plans should contain:
● Clear objectives
● Activities to be delivered
● Quality standards
● Desired outcomes
● Staffing and resource requirements
● Implementation timetables
● A process for monitoring progress.
Business Plan
A business plan is a formal statement of a set of business goals, the reasons why they
are believed attainable, and the plan for reaching those goals. It may also contain background
information about the organization or team attempting to reach those goals.
Business plans may also target changes in perception and branding by the customer,
client, taxpayer, or larger community. A business plan having changes in perception and
branding as its primary goals is called a marketing plan.
Audience
Business plans may be internally or externally focused. Externally focused plans target
goals that are important to external stakeholders, particularly financial stakeholders. They
typically have detailed information about the organization or team attempting to reach the
goals.
An internal business plan is often developed in conjunction with a balanced scorecard or

a list of critical success factors. This allows success of the plan to be measured using
nonfinancial measures. Business plans that identify and target internal goals, but provide only
general guidance on how they will be met are called strategic plans. Operational plans describe
the goals of an internal organization, working group or department. Project plans, sometimes
known as project frameworks, describe the goals of a particular project. They may also address
the project's place within the organization's larger strategic goals.
Presentation Formats
The format of a business plan depends on its presentation context.
It is not uncommon for businesses, especially start-ups to have three or four formats for
the same business plan:
1. An "elevator pitch": A three minute summary of the business plan's executive
summary. This is often used as a teaser to awaken the interest of potential
funders, customers, or strategic partners.
2. An oral presentation: A hopefully entertaining slide show and oral narrative that is
meant to trigger discussion and interest potential investors in reading the written
presentation. The content of the presentation is usually limited to the executive
summary and a few key graphs showing financial trends and key decision-making
benchmarks. If a new product is being proposed and time permits, a
demonstration of the product may also be included.
3. A written presentation for external stakeholders: A detailed, well written, and

pleasingly formatted plan targeted at external stakeholders.
4. An internal operational plan: A detailed plan describing planning details that are
needed by management but may not be of interest to external stakeholders. Such
plans have a somewhat higher degree of candor and informality than the version
targeted at external stakeholders.
Typical structure for a business plan for a startup venture:
● Cover page and table of contents

● Executive summary
● Business description
● Business environment analysis
● Industry background
● Competitive analysis
● Market analysis
● Marketing plan
● Operations plan
● Management summary
● Financial plan
● Attachments and milestones
Revisiting the Business Plan
Cost Overruns and Revenue Shortfalls
Cost and revenue estimates are central to any business plan for deciding the viability of
the planned venture. But costs are often underestimated and revenues overestimated resulting
in later cost overruns, revenue shortfalls, and possibly non-viability. The main causes of cost
overruns and revenue shortfalls are optimism bias and strategic misrepresentation. Reference
class forecasting has been developed to reduce the risks of cost overruns and revenue
shortfalls.
Legal and Liability Issues
Disclosure Requirements
An externally targeted business plan should list all legal concerns and financial liabilities
that might negatively affect investors. Depending on the amount of funds being raised and the
audience to whom the plan is presented, failure to do this may have severe legal
consequences.
Open Business Plans
An open business plan is a business plan with unlimited audience.
The business plan is typically web published and made available to all. In the free
software and open source business model, trade secrets, copyright and patents can no longer
be used as effective locking mechanisms to provide sustainable advantages to a particular
business and therefore a secret business plan is less relevant in those models.
Production Planning and Control
Planning
Planning in organizations and public policy is both the organizational process of creating
and maintaining a plan; and the psychological process of thinking about the activities required
to create a desired goal on some scale. As such, it is a fundamental property of intelligent
behavior.
Beyond this, planning has a different meaning depending on the political or economic
context in which it is used. Two attitudes to planning need to be held in tension: on the one
hand we need to be prepared for what may lie ahead, which may mean contingencies and
flexible processes. On the other hand, our future is shaped by consequences of our own
planning and actions.
An Overview
Planning is a process for accomplishing purpose. It is a blue print of business growth

and a road map of development. It helps in deciding objectives both in quantitative and
qualitative terms. It is setting of goals on the basis of objectives and keeping in view the
resources.
What should a Plan be?
A plan should be a realistic view of the expectations. Depending upon the activities, a
plan can be long range, intermediate range or short range. It is the framework within which it
must operate. For management seeking external support, the plan is the most important
document and key to growth. Preparation of a comprehensive plan will not guarantee success,
but lack of a sound plan will almost certainly ensure failure.
Purpose of a Plan
It serves the following three critical functions:
Helps management to clarify, focus, and research their

businesses or project's development and prospects.
Provides a considered and logical framework within which a business can develop and
pursue business strategies over the next three to five years.
Offers a benchmark against which actual performance can be measured and reviewed.
Importance of the Planning Process
The planning knows the business and those they have thought through its development
in terms of products, management, finances, and most importantly, markets and competition.
Planning helps in forecasting the future, makes the future visible to some extent. It bridges
between where we are and where we want to go. Planning is looking ahead.
Types of Plans or Planning
● Architectural planning
● Business plan
● Comprehensive planning
● Enterprise Architecture Planning
● Event Planning and Production
● Family planning
● Financial planning
● Infrastructure planning
● Land use planning
● Life planning
● Marketing plan
● Network resource planning
● Strategic planning
● Urban planning
● Operational planning
Objectives and Policies
Objectives
The objectives are general parts of the planning process. They are the end-results
towards which all business activities are directed. They are needed in every aspect where
performance and result directly and vitally affect the survival and success of the firm. In other
words, the objective of the firm justifies its existence. Robert C. Appley, "Objectives are goals;
they are aims which management and administration wish the organization to achieve." .In
other words, goals, aims and purposes are also used to signify objectives. Newman and
summer stated, "For managerial purposes, it is useful to think of objectives as the results we
want to achieve. Objective covers firm's long-range plans specific departmental goals and
short-term individual assignment also."
Policies
George R. Ferry, "Policy is a verbal, written or implied overall guide setting up
boundaries that supply the general units and directions in which managerial action will take
place." Policies are specific guidelines and constraints for managerial thinking on decision-
making and action.
Policies provide the framework within which decision-makers are expected to operate
while making organizational decisions. They are the basic guides to be consistent in decision-
making.
Planning Basics
Essentials of Planning
For a comprehensive business plan, management has to:
● Clearly define the target/goal in writing.

− It should be set by a person having authority.
− The goal should be realistic.
− It should be specific.
− Acceptability
− Easily measurable
● Identify all the main issues which need to be addressed.
● Review past performance.
● Decide budgetary requirement.
● Focus on matters of strategic importance.
● What are requirements and how will they be met?
● What will be the likely length of the plan and itsstructure?
● Identify shortcomings in the concept and gaps.
● Strategies for implementation.
● Review periodically.
Applications
In Organizations
Planning is also a management process, concerned with defining goals for future
organizational performance and deciding on the tasks and resources to be used in order to
attain those goals. The planning helps to achieve these goals or target by using the available
time and resources. The concept of planning is to identify what the organization wants to do by
using the four questions which are "Where are we today in terms of our business or strategy
planning? Where are we going? Where do we want to go? How are we going to get there?..."
In Public Policy
Planning refers to the practice and the profession associated with the idea of planning
an idea yourself. It is a conscious as well as sub-conscious activity. It is "an anticipatory
decision making process" that helps in coping with complexities.
It is selection of missions, objectives and "translation of knowledge into action." A
planned performance brings better results compared to an unplanned one. A manager's job is
planning, monitoring and controlling. Planning and goal setting are important traits of an
organization. It is done at all levels of the organization.
It bridges the gap from where the organization is to where it wants to be. The planning
function involves establishing goals and arranging them in logical order.
Control
Control is one of the managerial functions like planning, organizing, staffing and
directing. It is an important function because it helps to check the errors and to take the
corrective action so that deviation from standards are minimized and stated goals of the
organization are achieved in desired manner.
Control in management means setting standards, measuring actual performance and

taking corrective action. Thus, control comprises these three main activities.
Characteristics of Control
● Control is a continuous process

● Control is a management process
● Control is embedded in each level of organizational hierarchy
● Control is forward looking
● Control is closely linked with planning
● Control is a tool for achieving organizational activities
Elements of Control
The four basic elements in a control system:
1. The characteristic or condition to be controlled: It may be the output of the system

during any stage of processing or it may be a condition that has resulted from the
output of the system.
2. The sensor: It is a means for measuring the characteristic or condition.
3. The comparator: It determines the need for correction by comparing what is

occurring with what has been planned.
4. The activator: It is the corrective action taken to return the system to expected
output. It occurs in the same sequence and maintains a consistent relationship to
each other in every system.
Relationship between the Elements of Control and Information
Controlled Characteristic or Condition
The primary requirement of a control system is that it maintains the level and kind of
output necessary to achieve the system's objectives. It is usually impractical to control every
feature and condition associated with the system's output. Therefore, the choice of the
controlled item is extremely important. There should be a direct correlation between the
controlled item and the system's operation. In other words, control of the selected characteristic
should have a direct relationship to the goal or objective of the system.
Sensor
After the characteristic is sensed, or measured, information pertinent to control is fed

back. Exactly what information needs to be transmitted and also the language that will best
facilitate the communication process and reduce the possibility of distortion in transmission
must be carefully considered.
Comparison with Standard
Regulations and laws provide a more formal collection of information for society. Social
norms change, but very slowly. In contrast, the standards outlined by a formal law can be
changed from one day to the next through revision, discontinuation, or replacement by another.
Implementor
The activator unit responds to the information received from the comparator and initiates
corrective action. If the system is a machine-to-machine system, the corrective inputs are
designed into the network.
When the control relates to a man-to-machine or man-to-man system, however, the

individual(s) in charge must evaluate:
● The accuracy of the feedback information,
● The significance of the variation, and
● What corrective inputs will restore the system to a reasonable degree of stability.
Once the decision has been made to direct new inputs into the system, the actual process may
be relatively easy.
Process of Controlling
● Setting performance standards.
● Measurement of actual performance.
● Comparing actual performance with standards.
● Analyzing deviations.
● Correcting deviations.
Kinds of Control
Control may be grouped according to three general classifications:
1. The nature of the information flow designed into the system,

2. The kind of components included in the design, and
3. The relationship of control to the decision process.
Open- and Closed-Loop Control
A street-lighting system controlled by a timing device is an example of an open-loop
system. At a certain time each evening, a mechanical device closes the circuit and energy
flows through the electric lines to light the lamps.
In another instance, the sensing, comparison, or adjustment may be made through

action taken by an individual who is not part of the system. For example, the lights may be
turned on by someone who happens to pass by and recognizes the need for additional light. If
control is exercised as a result of the operation rather than because of outside or
predetermined arrangements, it is a closed-loop system.
The home thermostat is the classic example of a control device in a closed-loop system.
When the room temperature drops below the desired point, the control mechanism closes the
circuit to start the furnace and the temperature rises. The furnace-activating circuit is turned off
as the temperature reaches the preselected level.
The significant difference between this type of system and an open-loop system is that
the control device is an element of the system it serves and measures the performance of the
system. In other words, all four control elements are integral to the specific system.
Man and Machine Control
In automatic machine systems, inputs of information are used in a process of continual

adjustment to achieve output specifications.
Machine systems can be complex because of the sophisticated technology, whereas

control of people is complex because the elements of control are difficult to determine. In
human control systems, the relationship between objectives and the characteristics is often
vague; the measurement of the characteristic may be extremely subjective; the expected
standard is difficult to define; and the amount of new inputs required is impossible to quantify.
Organizational and Operational Control
The concept of organizational control is implicit in the bureaucratic theory of Max Weber.
Associated with this theory are such concepts as "span of control", "closeness of supervision",
and "hierarchical authority". Weber's view tends to include all levels or types of organizational
control as being the same.
In both instances, the elements of feedback are present, but organizational control tends
to review and evaluate the nature and arrangement of components in the system, whereas
operational control tends to adjust the daily inputs.
The process of organizational control is to review and evaluate the performance of the
system against these established norms. Rewards for meeting or exceeding standards may
range from special recognition to salary increases or promotions. On the other hand, a failure
to meet expectations may signal the need to reorganize or redesign.
In contrast to organizational control, operational control serves to regulate the day-to-day

output relative to schedules, specifications, and costs. Is the output of product or service the
proper quality and is it available as scheduled? Are inventories of raw materials, goods-in-
process, and finished products being purchased and produced in the desired quantities? Are
the costs associated with the transformation process in line with cost estimates?
Problems of Control
Operating in control" or "with plan" does not guarantee optimum performance. For
example, the plan may not make the best use of the inputs of materials, energy, or information
— in other words, the system may not be designed to operate efficiently. Some of the more
typical problems relating to control include the difficulty of measurement, the problem of timing
information flow, and the setting of proper standards.
Measurement of Output
When objectives are not limited to quantitative output, the measurement of system
effectiveness is difficult to make and subsequently perplexing to evaluate. Many of the
characteristics pertaining to output do not lend themselves to quantitative measurement. This is
true particularly when inputs of human energy cannot be related directly to output. The same
situation applies to machines and other equipment associated with human involvement, when
output is not in specific units.
Quantifying human behavior, despite its extreme difficulty, subjectivity, and imprecision
in relation to measuring physical characteristics is the most, prevalent and important
measurement made in large systems. The behavior of individuals ultimately dictates the
success or failure of every man-made system.
Information Flow
The most serious problem in information flow arises when the delay in feedback is
exactly one-half cycle, for then the corrective action is superimposed on a variation from norm
which, at that moment, is in the same direction as that of the correction. This causes the
system to overcorrect, and then if the reverse adjustment is made out of cycle, to correct too
much in the other direction, and so on until the system fluctuates out of control. One solution to
this problem rests in anticipation, which involves measuring not only the change but also the
rate of change. The correction is outlined as a factor of the type and rate of the error. The
difficulty also might be overcome by reducing the time lag between the measurement of the
output and the adjustment to input.
Setting Standards
Standards should be as precise as possible and communicated to all persons

concerned. In human systems, standards tend to be poorly defined and the allowable range of
deviation from standard also indefinite. For example, how many hours each day should a
professor is expected to be available for student consultation?
Objectives
● Effectiveness: Goods to fulfill customers' needs

● Maximizing output: Maximum output with minimum input
● Quality control: Product/service quality meets planned quality specifications
● Minimize throughput time: Conversion of RM to FG in minimum time
● Capacity: Full utilization of men and machines
● Minimize cost: Minimum cost of production
● Maintaining inventory: Optimal inventory
● Flexibility: Flexibility in production operations
● Coordination: Between men and machines
● Capacity: Plan for current and future needs
● Reduce bottlenecks: Solve production problems early
● Maximize profit: Minimize cost
● Production schedules: As per plan
● Routes and schedules: To optimize use of men, material and machinery
● Maintain performance: Maintain standards
Functions of Production Control
● Inventory control: NIRP, JIT

● Time management
● Quality control
● Maintenance and Replacement
● Cost reduction and cost control
● Dispatch
● Expediting/Follow-up/Progressing
Scope of Production Planning and Control
● Material: RM, components, spares; right quantity; right time

● Methods
● Machines and equipment
● Manpower
● Routing
● Estimating
● Loading and scheduling
● Dispatching
● Expediting
● Inspection
● Evaluating
● Cost control
Phases in Production Planning and Control System
● Planning:
— Pre-planning
— Product planning and development;
— Demand forecasting;
— Resource planning;
— Facilities planning;
— Plant location and layout
● Active planning
— Quantity planning;
— Product mix;
— Routing;
— Scheduling;
— Material planning;
— Process planning;
— Capacity planning;
— Tool planning
Benefits of Production Planning and Control
● Higher quality
● Better resource utilization
● Reduced inventory
● Reduced manufacturing cycle time
● Faster delivery
● Better customer services
● Lower production costs
● Lower capital investment
● Higher customer service
● Improved sales turnover
● Improved market share
● Improved profitability
● Competitive advantage
● Flexibility
● Dependability
● Lower prices
Limitations of Production Planning and Control
● Based on assumptions
● Resistance to change
● Time consuming
● Difficult due to rapid environment changes
Measuring Effectiveness of Production Planning and Control
● Delivery
● Inventory levels
● Production/Operations Management
Requirements for Effective Production Planning and Control
● Sound organizational structure

● Delegation of authority
● Reliable, up-to-date feedback
● Standardization
● Trained people
● Flexibility to adapt
● Appropriate management policies
● Accurate assessment of manufacturing/procurement lead times
● Adequate plant capacity
Work Study
Work Study is the systematic examination of the methods of carrying out activities such
as to improve the effective use of resources and to set up standards of performance for the
activities carried out.
Another definition of Work Study could be: A generic term for those techniques,
particularly method study and work measurement, which are used in the examination of human
work in all its contexts, and which lead systematically to the investigation of all the factors
which affect the efficiency and economy of the situation being reviewed, in order to effect
improvement.
Productivity
In this post were going to take a deep look into the concept of productivity.
Here's our personal definition of productivity:
Productivity = Value/Time
By this definition there are two primary ways of increasing productivity:
1. Increase the value created
2. Decrease the time required to create that value
What is the "Value" in Our Productivity Equation?
Value is a quality you must define for yourself. Hence, any definition of productivity is
relative to the definition of value. In circles where people can agree on a common definition of
value, they can also agree on a common definition of productivity. We define value in terms of
work output within our career, number of tasks completed, number and quality of important
projects finished, etc.
Impact
First, according to your definition of value, to what extent is the value provided? Who
receives the value? Yourself, your boss, your coworkers, your friends, your family, your
company, your customers, your team, certain investors, your community, your country, the
world , your family, God, all conscious beings, etc?
For example, if you’re the CEO of a Fortune 500 corporation or the leader of a country,
you'll have a far greater ability to provide value to large numbers of people vs. if you work as a
janitor. The more people you can influence, the greater your potential value. Greater leverage
means greater potential impact.
Endurance
Secondly, how long does the value you create endure? An hour, a day, a week, a
month, a year, a decade, a lifetime, 100 years, 1000 years, 10,000 years, until the end of time?
To what extent does your value carry forward in time? Is it quickly consumed and forgotten? Or
does it continue to regenerate itself year after year? Does your value create ripples through
time?
The Mona Lisa is still providing value hundreds of years after its creation. But other
works of art do not provide any enduring value beyond the lifetime of the artist. They are
quickly abandoned and eventually replaced.
Essence
Thirdly, what is the essence of the value you produce? Do you help people survive?
Entertain them? Enlighten them? How much do others value what you produce? What price
would they be willing to pay for it? Do they consider your value essential, optional, or
undesirable? How unique is your value? Are you the only one who can provide it, or are there
plenty of equivalent choices?
Volume
Lastly, what is the volume of value you create? How much of it are you putting out in a
given period of time? What is the quantity in which you produce that value?
So now we have this little formula:
Value = Impact x Endurance x Essence x Volume
And therefore:
Productivity = Impact x Endurance x Essence x Volume/Time
C
Productivity Conceptual Model
The Productivity Conceptual Model takes the form of a
`productivity tree'. The roots denote the inputs to the system,
the trunk the conversion process and the foliage and fruits the
systems outputs.
The successful management of this process is

ultimately the key to survival of any organization. It should be
the concern of and a development goal for all organizational
members, irrespective of their position.
Method Study
Method study is the process of subjecting work to

systematic, critical scrutiny in order to make it more effective
and/or more efficient.
It was originally designed for the analysis and improvement of repetitive, manual work,
but it can be used for all types of activity at all levels of an organization.
The process is often seen as a linear, described by its main steps of:
● Select: Work is selected for method study on the basis of it being an identified problem
area or an identified opportunity and usually because it meets certain conditions of
urgency and/or priority. Before any method study investigation is begun, it is necessary
to establish clear terms of reference which define the aims, scale, scope and constraints
of the investigation.
● Record: It is to provide sufficient data to performance as the basis of evaluation and

examination. A wide range of techniques are available for recording; the choice depends
on the nature of the investigation and the work being studied, and on the level of detail
required. Many of the techniques are simple charts and diagrams, but these may be
supplemented by photographic and video recording, and by computer-based techniques.
● Examine: The Examine stage merges into the Develop stage of the investigation as
more thorough analysis leads automatically to identify areas of change. The aim here is
to identify possible actions for improvement and to subject these to evaluation in order to
develop a preferred solution.
● Develop;
Install: The success of any method study project is realized when actual change is
made 'on the ground' - change that meets the originally specified terms of reference for
the project. Thus, the Install phase is very important. Making theoretical change is easy;
making real change demands careful planning and handling of the people involved in the
situation under review.
● Maintain: Some time after the introduction of new working methods, it is

necessary to check that the new method is working, that it is being adhered to, and that
it has brought about the desired results. Method drift is common when people start to
either revert to old ways of working, or introduce new changes.
Work Measurement
Work measurement is the process of establishing the time that a given task would take
when performed by a qualified worker working at a defined level of performance.
There are various ways in which work may be measured and a variety of techniques
have been established.
The basic procedure, irrespective of the particular measurement technique being used,
consists of three stages:
1. An analysis phase in which the job is divided into convenient, discrete components,
commonly known as elements;
2. A measurement phase in which the specific measurement technique is used to
establish the time required to complete each element of work;
3. A synthesis phase in which the various elemental times are added, together
with appropriate allowances to construct the standard time for the complete job.
Rating
The rating is used to convert the observed time to the basic time using the simple
formula:
Basic time = observed time x observed rating/standard rating
Rating is regarded by many as a controversial area of measurement since it is a

subjective assessment. Where different observers rate differently, the resulting basic times are
not comparable. However, practiced rating practitioners are remarkably consistent. It is
important that those undertaking the rating are properly trained, and that this training is
regularly updated through rating 'clinics'.
Allowances
The amount of the allowance depends on the nature of the work and the working
environment, and is often assessed using an agreed set of guidelines and scales. It is usual to
allow some of the recovery period inherent in these allowances to be taken away from the
workplace. Thus, work design should include the design of an effective work-rest regime. The
addition of allowances should never be used to compensate for an unsafe or unhealthy working
environment.
It is often not economic to measure such infrequent work and an additional allowance is
added to cover such work and similar irregular delays. This allowance is known as a
contingency allowance and is assessed either by observation, by analysis of historical records
or by experience. The end result is a standard time which includes the time the work "should"
take plus additional allocations in the form of allowances, where appropriate, to cover
relaxation time, contingency time and, perhaps, unoccupied time which increases the overall
work cycle.
Choosing a Measurement Technique
The choice of a suitable measurement technique depends on a number of factors

including:
● The purpose of the measurement;

● The level of detail required;
● The time available for the measurement;
● The existence of available predetermined data;
● And the cost of measurement.
The advantage of structured and systematic work measurement is that it gives a

common currency for the evaluation and comparison of all types of work. The results obtained
from work measurement are commonly used as the basis of the planning and scheduling of
work, manpower planning, work balancing in team working, costing, labor performance
measurement, and financial incentives. They are less commonly used as the basis of product
design, methods comparison, work sequencing, and workplace design.
Tools and Techniques
of Project Management
Part III
Just in Time
Just in time is a 'pull' system of production, so actual orders provide a signal for when a
produc
t should be manufactured. Demand-pull enables a firm to produce only what is required,

in the correct quantity and at the correct time. This means that stock levels of raw materials,
components, work in progress and finished goods can be kept to a minimum. This requires a
carefully planned scheduling and flow of resources through the production process.
Advantages of JIT
● Lower stock holding means a reduction in storage space which saves rent and insurance
costs
● As a stock is only obtained when it is needed, less working capital is tied up in
stock
● There is less likelihood of stock perishing, becoming obsolete or out of date
● Avoids the build-up of unsold finished product that can occur with sudden changes in
demand
● Less time is spent on checking and re-working the product of others as the emphasis is
on getting the work right first time
Disadvantages of J1T
● There is little room for mistakes as minimal stock is kept for re-working faulty product
● Production is very reliant on suppliers and if stock is not delivered on time, the whole
production schedule, can be delayed
● There is no spare finished product available to meet unexpected orders, because all
product is made to meet actual orders — however, JIT is a very responsive method of
production.
a. Kanban System
A Kanban system is a means to achieve Just-in-time production. It works on the basis

that each process on a production line pulls just the number and type of components the
process requires, at just the right time. The mechanism used is a Kanban card. This is usually
a physical card but other devices can be used. Two kinds of Kanban cards are mainly used: A
Withdrawal Kanban - specifies the kind and quantity of product, which a manufacturing process
should withdraw from a preceding process.A Production-ordering Kanban - specifies the kind
and quantity of product which the preceding process must produce. It is often called an in-
process Kanban or simply a production Kanban.
Using Kanbans on a Production Line
Each process on the production line has two Kanban 'postboxes', one for withdrawal and
one for production-ordering Kanbans. At regular intervals, a worker takes withdrawal Kanbans
that have accumulated in his process post-box, and any empty pallets, to the location where
finished parts from the preceding process are stored. Each full pallet has attached to it one or
more production-ordering Kanbans which he removes and puts in the appropriate post-box
belonging to the process that produced the parts.
The worker now attaches a withdrawal Kanban to the pallet and takes it back to his own
process area. When this new pallet begins to be used, its withdrawal Kanban is put back into
the withdrawal post-box. At each process on the line, production-ordering Kanbansare
periodically removed from their post-box and used to define what parts and quantities to
produce next.
When and How Kanbans are effective
Kanbans help simplify planning and to fine-tune production to meet changing customer
demand of up to + or -10%. The system requires planned monthly and weekly production
schedules. Kanbans simplify day-to-day flexibility, and changes to the production schedule
need only to be given to the final assembly process and will then automatically work their way
back up the line.
Single Card Kanban Systems
In a single-card Kanban system, parts are produced and bought according to a daily
schedule, and deliveries to the user are controlled by’conveyancing’ Kanban. In effect, the
single-card system is a push system for production coupled with a pull system for delivery to the
point of use. Single-card Kanban controls deliveries very tightly, so that the using work center
never has more than a container or two of parts and the stock point serving the work center is
eliminated.
Advantages of Kanban Processing
● Provides a simple and understandable process.

● Provides quick and precise information.
● There are low costs associated with the transfer of information.
● Provides quick response to changes.
● There is a strict limit of over-capacity in processes.
● Avoids overproduction.
● Minimizes waste.
● Full control can be maintained.
● Delegates responsibility to line workers.
Six Sigma
Six Sigma is a business management strategy that seeks to improve the quality of
process outputs by identifying and removing the causes of defects and minimizing variability in
manufacturing and business processes. Each Six Sigma project carried out within an
organization follows a defined sequence of steps and has quantified targets. These targets can
be financial or whatever is critical to the customer of that process.
In Six Sigma, a defect is defined as any process output that does not meet customer
specifications, or that could lead to creating an output that does not meet Customer
specifications.
Features that set Six Sigma apart from previous quality improvement initiatives include:
A clear focus on achieving measurable and quantifiable financial returns from any Six
Sigma project.
An increased emphasis on strong and passionate management leadership and support.
A special infrastructure of "Champions," "Master Black Belts," "Black Belts," "Yellow

Belts", etc. to lead and implement the Six Sigma approach.
A clear commitment to making decisions on the basis of verifiable data, rather than
assumptions and guesswork.
Methods
Six Sigma projects follow two project methodologies

inspired by Deming's Plan-Do-Check-Act Cycle. These
methodologies, composed of five phases each, bear the acronyms DMAIC and DMADV.
● DMAIC is used for projects aimed at improving an existing business process. DMAIC is
pronounced as "duh-may-ick".
● DMADV is used for projects aimed at creating new product or process designs. DMADV
is pronounced as "duh-mad-vee".
DMAIC
The DMAIC project methodology has five phases:
1. Define the problem, the voice of the customer, and the project goals, specifically.
2. Measure key aspects of the current process and collect relevant data.
3. Analyze the data to investigate and verify cause-and-effect relationships. Determine
what the relationships are, and attempt to ensure that all factors have been
considered. Seek out root cause of the defect under investigation.
4. Improve or optimize the current process based upon data analysis using techniques
such as design of experiments, pok a yoke or mistake proofing, and standard work
to create a new, future state process. Set up pilot runs to establish process
capability.
5. Control the future state process to ensure that any deviations from target are
corrected before they result in defects. Control systems are implemented such as
statistical process control, production boards, and visual workplaces and the
process is continuously monitored.
DMADV
The DMADV project methodology, also known as DFSS, features five phases
Define design goals that are consistent with customer demands and the enterprise
strategy.
Measure and identify CTQs, product capabilities, production process capability, and
risks.
Analyze to develop and design alternatives, create a high-level design and evaluate
design capability to select the best design.
Design details, optimize the design, and plan for design verification. This phase may
require simulations.
Verify the design, set up pilot runs, implement the production process and hand it over to
the process owner.
Quality Management Tools and Methods used in Six Sigma
Within the individual phases of a DMAIC or DMADV project, Six Sigma utilizes many
established quality-management tools that are also used outside of Six Sigma.
● 5 Whys
● Analysis of variance
● ANOVA Gauge RandR
● Axiomatic design
● Business Process Mapping
● Catapult exercise on variability
● Cause and effects diagram
● Chi-square test of independence and fits
● Control chart
● Correlation
● Cost-benefit analysis
● CTQ tree
● Design of experiments
● Failure mode and effects analysis
● General linear model
● Histograms
● Homoscedasticity
● Quality Function Deployment
● Pareto chart
● Pick chart
● Process capability
● Quantitative marketing research through use of Enterprise Feedback Management
systems
● Regression analysis
● Root cause analysis
● Run charts
● SIPOC analysis
● Stratification
● Taguchi methods
● Taguchi Loss Function
● TRIZ
Implementation Roles
One key innovation of Six Sigma involves the "professionalizing" of quality management
functions.
Prior to Six Sigma, quality management in practice was largely relegated to the
production floor and to statisticians in a separate quality department. Formal Six Sigma
programmes borrow martial arts ranking terminology to define a hierarchy that cuts across all
business functions.
Six Sigma identifies several key roles for its successful implementation:
1. Executive Leadership: Includes the CEO and other members of top management. They
are responsible for setting up a vision for Six Sigma implementation. They also empower
the other role holders with the freedom and resources to explore new ideas for
breakthrough improvements.
2. Champions: Take responsibility for Six Sigma Implementation across the organization in
an integrated manner. The Executive Leadership draws them from upper management.
Champions also perform as mentors to Black Belts.
3. Master Black Belts: Identified by champions, perform as in-house coaches on Six Sigma.
They devote 100% of their time to Six Sigma. They assist champions and guide Black
Belts and Green Belts. Apart from statistical tasks, they spend their time on ensuring
consistent application of Six Sigma across various functions and departments.
4. Black Belts: Operate under Master Black Belts to apply Six Sigma methodology to
specific projects. They devote 100% of their time to Six Sigma. They primarily focus on
Six Sigma project execution, whereas Championsand Master Black Belts focus on
identifying projects/ functions for Six Sigma.
5. Green Belts: The employees who take up Six Sigma implementation along with their
other job responsibilities, operate under the guidance of Black Belts.
6. Yellow Belts: Trained in the basic application of Six Sigma management tools, work with
the Black Belt throughout the project stages and are often the closest to the work.
Origin and Meaning of the Term "Six Sigma Process"
The term "six sigma process" comes from the notion that if one has six standard
deviations between the process mean and the nearest specification limit, practically no items
will fail to meet specifications. This is based on the calculation method employed in process
capability studies.
Capability studies measure the number of standard deviations between the process
mean and the nearest specification limit in sigma units. As process standard deviation goes up,
or the mean of the process moves away from the center of the tolerance, fewer standard
deviations will fit between the mean and the nearest specification limit, decreasing the sigma
number and increasing the likelihood of items outside specifications.
Role of the 1.5 Sigma Shift
Experience has shown that processes usually do not perform as well in the long term as
they do in the short term. As a result, the number of sigmas that will fit between the process
mean and the nearest specification limit may well drop over time, compared to an initial short-
term study.
To account for this real-life increase in process variation over time, an empirically-based
1.5 sigma shift is introduced into the calculation. A process that fits six sigmas between the
process mean and the nearest specification limit in a short-term study will in the long term only
fit 4.5 sigmas — either because the process mean will move over time, or because the long-
term standard deviation of the process will be greater than that observed in the short term, or
both.
Hence, the widely accepted definition of a six sigma process as one that produces 3.4
defective parts per million opportunities. This is based on the fact that a process that is
normally distributed will have 3.4 parts per million beyond a point that is 4.5 standard deviations
above or below the mean. So the 3.4 DPMOof a "Six Sigma" process in fact corresponds to 4.5
sigmas, namely 6 sigmas minus the 1.5 sigma shift introduced to account for long-term
variation. This takes account of special causes that may cause deterioration in process
performance over time and is designed to prevent underestimation of the defect levels likely to
be encountered in real-life operation.
Sigma Levels
The table gives long-term DPMO values corresponding to various short-term sigma
levels.
Note that these figures assume that the process mean will shift by 1.5 sigma toward the
side with the critical specification limit. In other words, they assume that after the initial study
determining the short-term sigma level, the long-term C pk value will turn out to be 0.5 less than
the short-term Cpkvalue. So, for example, the DPMO figure given for 1 sigma assumes that the
long-term process mean will be 0.5 sigma beyond the specification limit (Cpk = -0.17),
rather than 1 sigma within it, as it was in the short-term study (Cpk = 0.33).
Note that the defect percentages only indicate defects exceeding the specification limit
to which the process mean is nearest. Defects beyond the far specification limit are not
included in the percentages.
Percent Percentage Short-term Long-term

Sigma level DPMO
defective yield Cpk Cpk
1 691,462 69% 31% 0.33 -0.17
2 308,538 31% 69% 0.67 0.17
3 66,807 6.7% 93.3% 1.00 0.5
4 6,210 0.62% 99.38% 1.33 0.83
5 233 0.023% 99.977% 1.67 1.17
6 3.4 0.00034% 99.99966% 2.00 1.5
7 0.019 0.0000019% 99.9999981% 2.33 1.83
Criticism
Lack of Originality
Noted quality expert Joseph M. Juran has described Six Sigma as "a basic version of
quality improvement", stating that "here is nothing new there”. It includes what we used to call
facilitators.
Role of Consultants
The use of "Black Belts" as itinerant change agents has fostered a cottage industry of
training and certification. Critics argue there is overselling of Six Sigma by too great a number
of consulting firms, many of which claim expertise in Six Sigma when they only have a
rudimentary understanding of the tools and techniques involved.
Potential Negative Effects
A Fortune substance stated that “of 58 large companies that have announced Six
Sigmaprogrammes, 91 percent have trailed the SandP 500 since". The statement is attributed
to “an analysis by Charles Holland of consulting firm Qualpro.” The summary of the substance
is that Six Sigma is effective atwhat it is intended to do, but that it is “narrowly designed to fix
an existing process” and does not help in “coming up with new products or disruptive
technologies."
Advocates of Six Sigma have argued that many of these claims are in error or ill-
informed. A Business Week, that James McNerney'sintroduction of Six Sigma at 3M, may have
had the effect of stifling creativity.
It cites two Wharton School professors who say that Six Sigma leads to incremental
innovation at the expense of blue-sky work. Going Lean, which describes a related approach
known as lean dynamics and provides data to show that Ford's "6 Sigma" programme did little
to change its fortunes.
Based on Arbitrary Standards
While 3.4 defects per million opportunities might work well for certain
products/processes, it might not operate optimally or cost effectively for others. A pacemaker
process might need higher standards, for example, whereas a direct mail advertising campaign
might need lower standards. The basis and justification for choosing 6 as the number of
standard deviations is not clearly explained. In addition, the Six Sigma model assumes that the
process data always conform to the normal distribution. The calculation of defect rates for
situations where the normal distribution model does not apply is not properly addressed in the
current Six Sigma literature.
Criticism of the 1.5 Sigma Shift
The statistician Donald J. Wheeler has dismissed the 1.5 sigma shift as "goofy" because
of its arbitrary nature. Its universal applicability is seen as doubtful. The 1.5 sigma shift has also
become contentious because it results in stated "sigma levels" that reflect short-term rather
than long-term performance: a process that has long-term defect levels corresponding to 4.5
sigma performance is, by Six Sigma convention, described as a “6 sigma process.”
The accepted Six Sigma scoring system thus cannot be equated to actual normal
distribution probabilities for the stated number of standard deviations, and this has been a key
bone of contention about how Six Sigma measures are defined. The fact that it is rarely
explained that a "6 sigma" process will have long-term defect rates corresponding to 4.5 sigma
performance rather than actual 6-sigma performance has led several commentators to express
the opinion that Six Sigma is a confidence trick.
Design for Six Sigma
DMADV, Define — Measure — Analyze — Design — Verify, is sometimes

synonymously referred to as DFSS. The traditional DMAIC Six Sigma process, as it is usually
practiced, which is focused on evolutionary and continuous improvement manufacturing or
service process development, usually occurs after initial system or product design and
development have been largely completed.
DMAIC Six Sigma as practiced is usually consumed with solving existing manufacturing
or service process problems and removal of the defects and variation associated with defects.
On the other hand, DFSS strives to generate a new process where none existed, or where an
existing process is deemed to be inadequate and in need of replacement. DFSS aims to create
a process with the end in mind of optimally building the efficiencies of Six Sigma methodology
into the process before implementation; traditional Six Sigma seeks for continuous
improvement after a process already exists.
DFSS as an Approach to Design
DFSS is closely related to systems engineering, operations research, systems

architecture and concurrent engineering. DFSS is largely a design activity requiring specialized
tools including: quality function deployment, axiomatic design, TRIZ, Design for X, design of
experiments, Taguchi methods, tolerance design, Robustification and response surface
methodology.
Arguments over the Separation of DFSS from Six Sigma
While it can be claimed that two processes are similar, in practice the working medium
differs enough so that DFSS requires different tool sets in order to perform its system design
tasks. DMAIC Six Sigma may still be used during depth-first plunges into the system
architecture analysis and for "back end" Six Sigma processes; DFSS provides system design
processes used in front-end complex system designs.
Similarities with other Methods
DFSS focuses on the creation of new value with inputs from customers, suppliers and
business needs. While traditional Six Sigma may also use those inputs, the focus is again on
improvement and not design of some new product or system. It also shows the engineering
background of DFSS. However, like other methods developed in engineering, there is no
theoretical reason why DFSS can't be used in areas outside of engineering. It has been used to
design processes for example.
DFSS, Applied to Software Engineering
DFSS in Software Engineering acts as a glue to blend the classical modelling techniques
of software engineering such asOOD or ERD with statistical, predictive models and simulation
techniques. The methodology provides Software Engineers with practical tools for measuring
and predicting the quality attributes of the software product and also enables them to include
software in system reliability models. It introduces techniques and measurements from different
stages of the lifecycle: Requirements, Design, Implementation, Verification and Validat
System
Acquisition Process
The process itself includes four phases of development:
1. Concept and Technology Development: is intended to explore alternative concepts

based on assessments of operational needs, technology readiness, risk, and
affordability.
2. Concept and Technology Development phase begins with concept exploration. During
this stage, concept studies are undertaken to define alternative concepts and to provide
information about capability and risk that would permit an objective comparison of
competing concepts.
3. System Development and Demonstration phase. This phase could be entered directly as
a result of a technological opportunity and urgent user need, as well as having come
through concept and technology development.
4. The last and longest phase is the Sustainment and Disposal phase of the programme.
During this phase, all necessary activities are accomplished to maintain and sustain the
system in the field in the most cost-effective manner possible.
Selection of Bidders
This is the process where the organization identifies potential suppliers for specified
supplies, services or equipment. These suppliers' credentials and history are analyzed,
together with the products or services they offer. The bidder selection process varies from
organization to organization, but can include running credit reports, interviewing management,
testing products, and touring facilities.
This selection process can include or exclude international suppliers depending on

organizational goals and criteria. Organizational goals will dictate the criteria for the selection
process of bidders. It is also possible that product or service being procured is so specialized
that the number of bidders are limited and the criteria must be very wide to permit competition.
Bidding Process
This is the process an organization utilizes to procure goods, services or equipment.

Processes vary significantly from the stringent to the very informal. Large corporations and
governmental entities are most likely to have stringent and formal processes.
These processes can utilize specialized bid forms that require specific procedures and
detail. The very stringent procedures require bids to be open by several staff from various
departments to ensure fairness and impartiality. Responses are usually very detailed. Bidders
not responding exactly as specified and following the published procedures can be
disqualified. Smaller private businesses are more likely to have less formal procedures. Bids
can be in the form of an email to all of the bidders specifying products or services. Responses
by bidders can be detailed or just the proposed dollar amount.
Technical Evaluation
Technical evaluations, evaluations of the technical suitability of the quoted goods or

services, if required, are normally performed prior to the commercial evaluation. During this
phase of the procurement process, a technical representative of the company will review the
proposal and designate each bidder as either technically acceptable or technically
unacceptable.
Purchasing Management
Purchasing management directs the flow of goods and services in a company and
handles all data relating to contact with suppliers. Effective purchasing management requires
knowledge of the supply chain, business and tax laws, invoice and inventory procedures, and
transportation and logistics issues. Although a strong knowledge of the products and services
to be purchased is essential, purchasing management professionals must also be able to plan,
execute, and oversee purchasing strategies that are conducive to company profitability.
Sourcing reliable suppliers is a crucial part of purchasing management. Purchasing

managers, agents, and buyers usually learn about new products and services from Internet
searches, trade shows, and conferences. They meet with potential suppliers in their plants
whenever possible. Skills in foreign languages may be helpful for sourcing suppliers in other
countries. Purchasing management professionals must always assess potential suppliers in
terms of the supplier's ability to deliver quality merchandise at a suitable price on time.
Objectives
To maintain uninterrupted flow of materials to support the development schedules:
● To procure materials economically at a cost consistent with the quality and service
required. However, generally all purchases may be attempted at the lowest cost.
● To provide the necessary expertise, advice, information to the Curators and
Education Officers with regard to the best quality of material available in the market,
supplier's capability and performance etc.
● To develop and maintain good buyer-seller relationship.
● To promote source development.
● To maintain NCSM's reputation and credibility in the market by fair dealings and
prompt payments.
Functions
The main functions of the Purchase Department are defined as follows:
● Procurement of stores through indigenous and foreign sources as required in

accordance with the rules in force.
● Checking of requisitions/purchase indents.
● Selection of suppliers for issue of enquiries.
● Issuing enquiries/tenders and obtaining quotations.
● Analyzing quotations and bids etc. and preparation of comparative statement.
● Consultation with the Indentor for selection and
approval of quotations and with Accounts Officer for Neotiating contracts.
● Negotiating contracts.
● Checking legal conditions of contracts. Consulting Administrative Officer or Secretary,
NCSM ─ where necessary.
● Issue of Purchase Orders.
● Follow-up of purchase orders for delivery in due time
● Verification and passing of suppliers' bills to see that payments are made promptly.
● Correspondence and dealing with suppliers, carriers etc., regarding shortages,
rejections etc., reported by the Stores Department.
● Maintenance of purchase records.
● Maintenance of progressive expenditure statement, subhead wise.
● Maintenance of vendor performance records/data.
● Arrangement for Insurance Surveys, as and when necessary.
● Clearance of foreign consignments.
● Keeping various Departments/Divisions informed of the progress of their indents in
case of delay in obtaining supplies.
● Serving as an information center on the materials' knowledge i.e. their prices, source
of supply, specification and other allied matters.
● Development of reliable and alternate sources of supply.
o It shall be particularly ensured:
o That all purchase is made against properly authorized requisitions and valid
sanctions, showing the correct and detailed end-use.
o That all the materials requisitioned are duly ordered from the right source after
full enquiries on most competitive price taking into account the trade discounts
and tax benefits etc.
o That the right quantity of the goods consistent with the quality and the
specification required is bought.
o That the deliveries of all goods are received within the stipulated period.
o That claims due to shortages or any other discrepancies are settled promptly.
o That cordial and harmonious relation with all parts/divisions is maintained for
becoming an efficient service unit in the museum/centre.
● While receiving the planned requirement of the indentors, it should be prevailed upon
the Indentors to certify clearly that the quantities indicated are definitely required for
the project and specify the period within which the quantities indented will be
consumed. It is the duty of the purchase part to check purchase indents against
needs and suggest modification of quantities wherever necessary.
Methods of Purchase
The use of the purchase method improves accounts, but investors are likely to disregard
the impact of goodwill, which is the largest change.
The elimination of provisions is more useful because of the extra visibility and the
prevention of abuses:
● Full: The purchase of a receivable in its entirety.

● Partial: The purchase of immediate installments, with the seller retaining remaining
installments and/or the balloon payment.
● Reverse Partial:The purchase of future installments, allowing the seller to continue
receiving immediate installments for a specified period of time.
● Split Disbursement Partial: The purchase of a portion of each installment for a
specified time and amount. Seller receives the remainder of each installment.
● Multiple Stage Payout: The full purchase of a receivable by means of a guaranteed
staged payout of proceeds equaling or exceeding the principal balance. Seller
receives stated payout regardless of the purchased receivable's performance.
● Multiple Cash Flow: The purchase of up to 50% of the cash flow created by multiple
receivables held by a single seller.
● Short Life Yield: A method of calculating a higher buy price on a long term, Grade A
receivable, by calculating the purchase price of the receivable as if there were a 10-
year balloon payment.
Purchasing Procedure
Purchase Request
The specifications and number/quantity and delivery of equipment, devices and

materials are determined by the department(s) that will be using the product(s) or materials.
The Purchasing Department conducts purchase activities based on purchase requests
submitted by the/these department(s)
Selection of Companies for Estimate Submission
The Purchasing Department, at its sole discretion, selects companies from which
estimates will be sought. Suppliers are selected from the files of "Companies with Previously
Established Business Relationships", "Companies from Which Estimates Can Be Requested"
and "Products and Suppliers". Selection is made by comprehensively evaluating such factors
as the quality and performance of the equipment, device(s) or materials to be purchased,
compatibility with existing facilities, degree of reliability, product requirements including safety,
delivery time, the scale of the order, after-sale service and the company's previous business
record.
Estimate Request
As a rule, when requesting an estimate from a company that it has selected, Osaka Gas
will set out a specification from listing Osaka Gas's requirements in respects of quality,
performance standard, size, inspection and method of inspection. The selected companies will
be asked to submit cost estimates and specifications to Osaka Gas prior to a specified date.
Submission Estimate
Specification sheets submitted by potential suppliers at their own expense are checked
by the Purchasing Department and the department(s) that will be using the product(s), in order
to determine whether the required standards are met by the product(s). All products must pass
this examination. During this process, Osaka Gas may request additions or changes to the
specifications.
Negotiation
After valid cost estimates and specifications have been comprehensively evaluated in
respect of price, technical requirements, etc. Osaka Gas will commence negotiation with the
company with the most attractive proposal to discuss the amount of the contract and other
terms and conditions. The selection of such a company shall be made by Osaka Gas at its sole
discretion. Contract terms and conditions will be decided upon mutual agreement.
Contract Conclusion
The business will be established upon conclusion of a contract, in the form of a written
document if necessary. The obligations and liabilities of Osaka Gas arise only when such
contract is concluded.
Delivery and Inspection
Delivery dates specified in the contract must be strictly observed. Precise details of the
delivery schedule will be agreed between the supplier and the relevant department(s) of Osaka
Gas. Delivered equipment, device(s) or materials must pass inspections conducted by the
relevant department(s) of OsakaGas. When deemed significant, an interim inspection may
conduct during the manufacturing process.
Payment
Payment will be made according to the payment terms specified in the contract.
Value Analysis Process
The first step in the value analysis process is to define the problem and its scope. Once
this is done, the functions of the product and its items are derived. These functions are
classified into "basic" and "secondary" functions. A Cost Function Matrix or Value Analysis
Matrix is prepared to identify the cost of providing each function by associating the function with
a mechanism or component part of a product. The objective of the Function Cost Matrix
approach is to draw the attention of the analysts away from the cost of components and focus
their attention on the cost contribution of the functions. The Function Cost Matrix displays the
components of the product, and the cost of those components, along the left vertical side of the
graph. The top horizontal legend contains the functions performed by those components. Each
component is then examined to determine how many functions that component performs, and
the cost contributions of those functions.
Function Analysis System Technique
Function Analysis System Technique is an evolution the value analysis process created
by Charles Bytheway. FAST permits people with different technical backgrounds to effectively
communicate and resolve issues that require multi-disciplined considerations.
The FAST diagram or model is an excellent communications vehicle. Using the verb-
noun rules in function analysis creates a common language, crossing all disciplines and
technologies. It allows multi-disciplined team members to contribute equally and communicate
with one another while addressing the problem objectively without bias or preconceived
conclusions. With FAST, there is no right or wrong model or result.
FAST differs from value analysis in the use of intuitive logic to determine and test
function dependencies and the graphical display of the system in a function dependency
diagram or model. Another major difference is in analyzing a system as a complete unit, rather
than analyzing the components of a system. When studying systems it becomes apparent that
functions do not operate in a random or independent fashion. A system exists because
functions form dependency links with other functions, just as components form a dependency
link with other components to make the system work. The importance of the FAST approach is
that it graphically displays function dependencies and creates a process to study function links
while exploring options to develop improved systems.
Creating a Fast Model
The FAST model has a horizontal directional orientation described as the HOW-WHY
dimension. This dimension is described in this manner because HOW and WHY questions are
asked to structure the logic of the system’s functions. Starting with a function, we ask HOW that
function is performed to develop a more specific approach. This line of questioning and thinking
is read from left to right. To abstract the problem to a higher level, we ask WHY that function is
performed. This line of logic is read from left to right.
The FAST diagram can be expanded into a lower level of abstraction in the area under
investigation.
The steps involved are as follows:
1. Use QFD to translate higher-level customer needs to subsystem technical

characteristics.
2. Create FAST diagram at lower level of abstraction for targeted
mechanism/subsystem.
3. Prepare a FAST diagram and develop the product concept in conjunction
with the QFD concept selection matrix
4. Dimension the system in the FAST diagram into assemblies/parts or identify
the assemblies/parts needed to perform the given function.
5. Develop value analysis matrix at a lower level of abstraction for the targeted
subsystem. The "what’s” or system requirements/function in the value
analysis matrix are derived from either a customer FAST diagram or by
selecting those function statements that correspond to the customer needs
or technical characteristics in the subsystem planning matrix.
6. Complete the value analysis matrix and identify high cost to value
mechanisms by comparing the mechanism target costs to the mechanism
estimated/actual costs.
Value Improvement Process
Value Improvement Process
Performing value analysis or producing the FAST model and analyzing functions with the
value analysis matrix are only the first steps in the process. The real work begins with
brainstorming, developing and analyzing potential improvements in the product.
These subsequent steps are supported by:
● The QFD Concept Selection Matrix is a powerful tool to evaluate various concept
and design alternatives based on a set of weighted criteria that ultimately tie back to
customer needs.
● Benchmarking competitors and other similar products

helps to see new ways functions can be performed and
breaks down some of the not-invented-here paradigms.
● Product cost and life cycle cost models support the estimating of cost for the
Function-Cost and Value Analysis Matrices and aid in the evaluation of various
product concepts.
● Technology evaluation leads us to new ways that basic functions can be performed
in a better or less costly way. Concept development should involve people with a
knowledge of new technology development and an open mind to identify how this
technology might relate to product functions that need to be performed. Methods
such as the theory of inventive problem solving or TRIZ are useful in this regard.
● Design for Manufacturability/Assembly principles provide guidance on how to better

design components and assemblies that are more manufacturable and, as a result,
are lower in cost.
Value Analysis or Function Analysis provides the methods to identify the problem and to
begin to define the functions that need to be performed. As we proceed in developing a FAST
model, implicit in this process is developing a concept of operation for the product which is
represented by all of the lower order functions in a FAST diagram. Concept alternatives
will be developed through brainstorming, benchmarking other products performing similar
functions, and surveying and applying new technology. Since multiple concepts need to be
evaluated, we want to use a higher level of abstraction for the FAST model to provide us with
the greatest flexibility and a minimum level of effort. Trade studies and technical analysis will be
performed to evaluate various product concepts. A concept selection matrix is a good tool to
summarize a variety of different data and support making a decision about the preferred
concepts.
All of these steps may be iterative as a preferred concept evolves and gets more fully
developed. In addition, there should be a thorough evaluation of whether all functions are
needed or if there is a different way of accomplishing a function as the concept is developed to
a lower level of abstraction. When a Function Cost or Value Analysis Matrix is prepared,
functions that are out of balance with their worth are identified, further challenging the team to
explore different approaches.
Stock Control Systems
1. Fixed re-order stock level
This method of stock control is where a business decides the minimum level of stocks it
can tolerate, and then re-orders before the stocks reach this level. The exact timing will depend
how long the stocks take to arrive. This can be illustrated as follows:
The distance between the re-order line and the minimum stocks level depends how long
it may take for the order to arrive this time is known as the lead time.
2. Fixed Time Reordering
This method is exactly as its title suggests. The firm reorders stocks at a fixed time each
month or week. It can offer a good solution as it represents a routine for the firm and ensures
that stocks are regularly supplemented. However, it may well mean the level of stocks
fluctuating quite a bit depending on the rate they are used up. It is a little inflexible as a system
as well unless used very carefully.
3. Economic Order Quantity
For any company there is an optimum level of stocks. The precise level of this will vary
in different firms and industries. They have to balance the costs of holding stocks with the costs
of ordering stock. The more firms order at once, the better the deal they will usually get.
The level of stocks that strikes the balance between these two things is known as the
economic order quantity. If this is taken to be the optimum level of stocks, it should help to
minimize the firm's costs ─ an important pre-requisite to maximizing profit.
4. Just-in-time Production
Because stocks cost so much to keep, another method of stock-control was developed
in Japan and has now become much more common in the UK. The just-in-time method
involves keeping stocks to an absolute minimum, and the raw materials are ordered only when
they are needed. In other words, just-in-time.
This time period in some cases has been reduced to minutes or hours, and the raw
materials arrive on site moments before they are needed. This can be wonderful for helping to
reduce the need for working capital, but requires a very high level of organizational skill and a
very close relationship with suppliers.
Brand Management:
Part IV
PRINCIPLES
OF
A
o
Brand management is the application of marketing techniques to a specific product,
product line, or brand. It seeks to increase a product's perceived value to the customer and
thereby increase brand franchise and brand equity. Marketers see a brand as an implied
promise that the level of quality people have come to expect from a brand will continue with
future purchases of the
same product. This may
increase sales by
MANA
making a comparison with
competing products more favorable.
Principles of Brand Management
A good brand name should:
● Be protected under Trademark law.

● Be easy to pronounce.
● Be easy to remember.
● Be easy to recognize.
● Be easy to know.
● Be easy to translate into all languages in the markets where the brand will be
used.
● Attract attention.
● Suggest product benefits or suggest usage.
● Suggest the company or product image.
● Distinguish the product's positioning relative to the competition.
● Be attractive.
● Stand out among a group of other brands.
Functions of Brand
● Identification of source of product

● Assignment of responsibility to product maker
● Risk reducer
● Search cost reducer
● Symbolic device
● Signal of quality
● Speak personality
● Deliver its value qualitatively and quantitatively
● Live up to consumer expectation
● It speaks itself looks are more important
● Means of identification to simplify handling and tracing
● Means of legally protecting unique features
● Signal of quality level to satisfied customers
● Means of endowing products with unique associations
● Source of competitive advantage
● Source of financial returns
Brand Architecture
The different brands owned by a company are related to each other via brand
architecture. In "product brand architecture,” the company supports many different product
brands with each having its own name and style of expression while the company itself remains
invisible to consumers. Procter and Gamble, considered by many to have created product
branding, is a choice example with its many unrelated consumer brands such as Tide,
Pampers, Abunda, Ivory and Pantene.
Types of Brand Architecture
There are three key levels of branding:
Corporate brand, umbrella brand, and family brand: Examples include

Virgin Group and Heinz. These are consumer-facing brands used across all the firm's activities,
and this name is how they are known to all their stakeholders─ consumers, employees,
shareholders, partners, suppliers and other parties. These brands may also be used in
conjunction with product descriptions or sub-brands: for example Heinz Cream of Tomato Soup,
or Virgin Trains.
Endorsed brands and sub-brands: For example, Nestle KitKat, Cadbury

Dairy Milk, Sony PlayStation or Polo by Ralph Lauren. These brands include a parent brand—
which may be a corporate brand, an umbrella brand, or a family brand—as an endorsement to a
sub-brand or an individual, product brand. The endorsement should add credibility to the
endorsed sub-brand in the eyes of consumers.
Individual product brand: For example, Procter and Gamble's Pampers or
Unilever's Dove. The individual brands are presented to consumers, and the parent company
name is given little or no prominence. Other stakeholders, like shareholders or partners, will
know the producer by its company name.
Techniques
Companies sometimes want to reduce the number of brands that they market. This
process is known as "Brand Rationalization." Some companies tend to create more brands and
product variations within a brand than economies of scale would indicate. Sometimes, they will
create a specific service or product brand for each market that they target. In the case of
product branding, this may be to gain retail shelf space. A company may decide to rationalize
their portfolio of brands from time to time to gain production and marketing efficiency, or to
rationalize a brand portfolio as part of corporate restructuring.
A recurring challenge for brand managers is to build a consistent brand while keeping its
message fresh and relevant. An older brand identity may be misaligned to a redefined target
market, a restated corporate vision statement, revisited mission statement or values of a
company. Brand identities may also lose resonance with their target market through
demographic evolution. Repositioning a brand may cost some brand equity, and can confuse
the target market, but ideally, a brand can be repositioned while retaining existing brand equity
for leverage. Brand orientation is a deliberate approach to working with brands, both internally
and externally.
The most important driving force behind this increased interest in strong brands is the
accelerating pace of Globalization. This has resulted in an ever-tougher competitive situation
on many markets. A product's superiority is in itself no longer sufficient to guarantee its
success. The fast pace of technological development and the increased speed with which
imitations turn up on the market have dramatically shortened product lifecycles. The
consequence is that product-related competitive advantages soon risk being transformed into
competitive prerequisites. For this reason, increasing numbers of companies are looking for
other, more enduring, competitive tools─ such as brands.
Branding Process
Branding is a process, a tool, a strategy and an orientation. It is a process by which a

marketer tries to build a long-term relationship with the customers, a tool to position a product
or service with a consistent image of quality and value for money to ensure the development of
a recurring preference by the consumer. Branding provides differentiation strategy when
product cannot be easily distinguished.
The process of creating a brand stems from research that starts with the concept of what
the product is, and what its functions and objectives are. From this evolves the idea of what is
should look, feel and talked about like. From these ideas generate the name and all its
connation, after which packing, logo and communication strategies are developed. This is a
simplistic view.
Brand building is usually a long, tedious and methodical work involving segmentation,
marketing mix, and packaging, technical and financial inputs. A branding process, if executed
well creates a brand like equipped to handle changes in demographics, thinking from and
functional changes as well as competitor actions. 96% of new brands that are developed in the
FMCG sector failed. This only goes to so that the market place in an unforgiving master. It
suggests that branding is not a static phenomenon; rather a continuous change in product
appearance and performance as well as the total value equation is must for survival of any
brand.
Branding In Rural India
The concept of branding has been a late entrant in rural markets. Consumers have
graduated to branded products with increased affordability as a result of increasing rural
incomes in recent years. A brand name in the rural context facilitates easy brand recall and in
drawing any colors, visual or numeric association. But some brands are known by their names,
for example, Nirma and Baba Zarda.
The challenges in creating a brand identity in rural involve the need to relate the brand
with the rural lifestyle, or with appropriate status symbols, or with the rural environment. As
most brands are introduced in urban markets and then move to rural, creating a brand identity
in rural becomes a tough challenge. Britannia Tiger biscuits created an identity associated with
a smart, active and sharp child.
Building a Brand Image
The brand should have a personality of its own. It should emote, empathize and talk to
its consumers. Such an ability helps in brand connect with rural audiences and contributes a
great deal to brand equity and competitive advantage. Mahindra and Mahindra have
maintained their sterling image in rural. The Bhumiputra series of tractors, with its rugged
features and the Sarapanch series have helped to improve sales. The Sarapanch brand helped
to draw close brand recognition between the product and the head of the village. In this way, it
provided an opportunity to the consumer to relate himself with the Sarpanch, who commands
high status and respect in thevillage.
A significant percentage of sales in the rural areas comprise of branded
B
products. Studies also have found out that the brand loyalty in the rural areas is
much higher than that found in the urban ones. This only happens when the brand
has found an acceptance in the rural market as the one offering good value proposition. But
building brands in rural areas is a different science altogether. This requires a specific
committed focus and may not happen as spill over from urban market or by doing slight
modification in communication and brand building efforts that were planned for urban markets.
Brand Orientation
Brand orientation is a deliberate approach to working with brands, both internally and
externally. The most important driving force behind this increased interest in strong brands is
the accelerating pace of Globalization. This has resulted in an ever-tougher competitive
situation on many markets. A product’s superiority is in itself no longer sufficient to guarantee
its success. Brand orientation refers to “the degree to which the organization values brands and
its practices are oriented towards building brand capabilities.”
Brand Community
A brand community is a community formed on the basis of attachment to a product or

marque. Recent developments in marketing and in research in consumer behavior result in
stressing the connection between brand, individual identity and culture. Among the concepts
developed to explain the behavior of consumers, the concept of a brand community focuses on
the connections between consumers.
A brand community can be defined as an enduring self-selected group of actors sharing

a system of values, standards and representations and recognizing bonds of membership with
each other and with the whole. The term "brand community" was first presented by Albert
Muniz Jr. and Thomas C. O'Guinn in a 1995paper for the Association for Consumer Research
Annual Conference in Minneapolis, MN. In a 2001 "Brand Community'', published in the Journal
of Consumer Research, they defined the concept as "a specialized, non-geographically bound
community, based on a structured set of social relations among admirers of a brand. Brand
communities are characterized in shared consciousness rituals and traditions, and a sense of
moral responsibility.
Brand Engagement
Brand Engagement is a term loosely used to describe the process of forming an
attachment between a person and a brand. It comprises one aspect of brand management.
What makes the topic complex is that brand engagement is partly created by institutions and
organizations, but is equally created by the perceptions, attitudes, beliefs and behaviors of
those with whom these institutions and organizations are communicating or engaging with.
As a relatively new addition to the marketing and communication mix, brand

engagement sits in the space between marketing, advertising, media communication, social
media, organizational development, internal communications and human resource
management. There is still lack of clarity and debate about whether this is a "soft" or hard
measure, and whether it can be linked to any consumer or employee behavior change—e.g.
sales activity, trial, or recommendation.
External Brand Engagement
Brand engagement between a brand and its consumers/potential consumers is a key

objective of a brand marketing effort. In general, the ways a brand connects to its consumer is
via a range of "touch points"—that is, a sequence or list of potential ways the brand makes
contact with the individual. Examples include retail environments, advertising, word of mouth,
online, and the product/service itself.
Internal Brand Engagement
There are two broad areas where brand engagement is relevant within an organization.
The first area is ensuring that the employer brand promised to employees is delivered upon
once employees join the firm. If the employee experience is not what is promised, this could
result in increased employee turnover and/or decreased performance. The second area is
ensuring employees and close stakeholders of an organization completely understand the
organization’s brand, and what it stands for ─ and to make sure that their activities on a day-to-
day basis are contributing to expressing that brand through the customer experience.
Brand Implementation
Brand implementation refers to the physical representation and consistent application of

brand identity across visual identity carriers. This can include signage, uniforms, liveries,
interior design and branded merchandise. Brand implementation encompasses facets of
architecture, product design, industrial design, quantity surveying, engineering, procurement,
project management and retail design.
Brand implementation emerged as a discipline in the 1990s when brand owners

recognized the need for consistency across branded estates. Traditionally, brand
implementation was handled by various parties, including shop-fitters, interior designers and
sign companies. Lack of centralized project management led to inconsistencies, while
information dissymmetry meant suppliers had too much control over brand issues. Brand
implementation was thus coined as an umbrella term for all aspects of the application and
maintenance of physical brand assets.
Brand implementation is now a critical discipline focused on binding the relationship

between the target audience and the brand. This allows brand implementation firms to identify
the best possible manufacturing solution for each project.
Brand implementation requires the agency to have detailed knowledge of technology

and their potential use. Faced with a brand that has a variety of elements such as a vignette,
three-dimensional forms, key lines, etc., it will be the expert technical knowledge that allows for
the best solution to be developed to ensure brand fidelity. Brand implementation does not
involve the design or creation of brand identity. Instead, brand implementation agencies work
closely with branding agencies to ensure the latter’s work is applied accurately and
consistently. This relationship is referred to as Magic and Logic. Branding agencies look after
the Magic and brand implementation agencies look after the Logic.
C
MARKET
ING
PROCESS
The Marketing Research Process
There are basically four steps in the marketing research process that franchisors must
follow:
o Define the problem and research objectives.

o Develop a research plan for collecting information.
o Implement the research plan by collecting and analyzing the data.
o Interpret and report the findings.
When defining the problem and research objectives, it is important that the franchisors
doing the research work closely with the decision makers to determine what research is
needed and how it will be used. If this step 1s skipped, the results generally will not address the
major problem. In a franchise setting, the research people must work closely with those people
in the franchise who handle recruitment of potential franchisees. They must also work with the
franchisees themselves to understand the needs of the market.
Marketing research is designed to reduce uncertainty and provide knowledge for the
franchisor. Thus, marketing research will help determine what is going right and what went
wrong. Research can help the franchisor understand consumers' buying motivations and
determine the strengths and weaknesses of the products or services.
The Franchise Dilemma
The franchise dilemma is that franchisors have two distinct and different target markets,
including:
● The prospective franchisee
● The end consumer
Unlike most major retail or service outlets, the franchisor does not sell directly to an end
consumer but through a franchising organization. The franchises are generally owned and
operated by franchisees who actually run, manage, or supervise the outlet stores. It is,
therefore, important for the franchisor to first develop a success profile for prospective
franchisees.
Using Research to Createa Franchisee Profile
The successful franchisee profile is best developed by devising a preference research

model. Such an approach involves research using both personal interviews and a general
survey instrument.
The personal interview is generally completed with existing successful franchisees. The
purpose of the interview is to measure franchisees' attitudes toward their managing experience,
as well as general demographic information. The franchisees selected for the study are
generally among the top quartile or top third in sales or other success criteria as determined by
the franchisors.
In addition to the personal interview, a general survey is made of all franchisees

concerning what they believe would be a success profile for franchisees. This general survey is
often developed by first using focus groups. The focus group generally includes 6-10 people
gathered together for a few hours with a trained interviewer to talk about franchisees,
managers, and successful management techniques. The trained interviewer generally begins
with broad questions before moving to specific issues.
Once a focus group has determined critical factors that lead to successful franchisees, a
survey of franchisees can begin. The purpose of the survey is to obtain primary data concern in
gratitude toward the franchisor and the franchise system, and goals of the franchisee, as well
as demographics. It is with this information that the franchisor can begin to understand where
problems with relationships with their franchisees are occurring.
Market Research
One of the most typical functions of a marketing research programme is to understand

the habits and attitudes of customers. This information, when provided to franchisees by the
franchisor, can build stronger channel relationships. The customer profile is often conducted
through exit interviews as well as a general survey.
Additionally, marketing research may be conducted with focus groups which will allow for
greater insights into the end consumer. Marketing research can play an integral part in proper
decision making in a franchising organization. More and more franchisors are recognizing the
benefits of implementing a marketing research programme.
Along with the commonly recognized benefits of marketing research, franchisors should
also recognize that marketing research can be an effective tool in building strong relationships
with its franchisees.
First, marketing research can help franchisors select franchisees whose goals are
consistent with system-wide growth. Second, franchisors can conduct customer research and
share the findings with franchisees.
Marketing research provides information which franchisors can use to properly

determine the profile for both the successful franchisee and the target customer. When both the
franchisee and customer profiles have been developed, the franchisor will be better able to
select franchisees who can manage the franchising outlet and serve the customer. Marketing
research becomes one tool to reducing unnecessary conflict within franchise channels.
Targeted Marketing
Targeted marketing, as a popular marketing strategy, refers to the concentrated

marketing of a product to a segment to a segment of consumers due to the attractiveness of
the group, in terms of such factors as its size and growth rate. Theoretically speaking, there is
nothing inherently wrong with targeted marketing. When marketers promote a product
beneficial to a group of consumers, targeted marketing is largely ethical and welcome by
consumers.
Product Harm
Many products in the marketplace, such as wholesome food and medicine, are
beneficial or at least beneficial to the target group. However, products that are intended to be
beneficial have from time to time been found harmful to some consumers, resulting in “market
failures.”
For instance, unless a pharmaceutical company tests a new product on everyone

(instead of limited clinical trials), it is difficult to determine whether the product will cause any
harm. The key issue here is the marketer's knowledge of the product's potential harm, even to
a small group of people. If a company discovers that a small percentage of people may suffer
negative reactions from its products and it immediately takes corrective measures, the
company may be deemed as acting ethically, believing that it should take responsibility for the
incident as part of its business liability.
Vulnerable Consumers
Recently, consumer vulnerability has drawn much attention in studies of marketing

ethics. In numerous legal cases, the court system in the U.S. has defined vulnerable
consumers as a group of people who, due to various idiosyncrasies, are sensitive and
susceptible to the potential negative effects associated with using a particular product. For
instance, a small group of people, due to their body biology, may suffer side effects from using
certain medications.
Moreover, children do not have the same level of knowledge, experience, or maturity as
adults to process commercial information. Many elderly people, due to their physical and/or
mental conditions, also face challenges as consumers. In addition, some consumers may be
prone to addiction or compulsion while others may be disadvantaged due to their social and
economic conditions.
Such examples of targeting vulnerable consumers include the targeting of high interest
loans of credit cards to consumers with poor credit histories and less financial sophistication.
Thus, product harmfulness is heightened for consumers at a risk or disadvantage, and poses
ethical concerns.
Discrimination
Discrimination in marketing refers to the practice of denying access to products to a

group of consumers due to their racial or ethnic background, age, gender, or other
characteristics. Discrimination may also have to do with discrepancies in product quality and
variety, and the terms of exchange such as pricing and payment method.
Need for Integration
Recent studies have revealed complex interactions among products, consumer

characteristics, and marketing practices in ethical evaluations of marketers, and have
recommended that marketers should tread carefully when venturing into certain market
segments. Despite these research efforts and the many theories of marketing ethics that have
emerged, a framework for comprehensive analysis of the ethical implications of market
selection and related marketing strategies remains elusive.
Noting the manifold issues and perspectives, several researchers stress the need for a
normative theory of ethics about market selection and marketing strategies. A more integrated
approach to analyzing the ethical implications of the marketing exchange can help chart a
coherent discourse on these critical issues and a better understanding of marketing ethics for
managers and public policy makers.
Contingency Theory
Contingency theory contributes to practical management by encouraging managers to:
● Identify important contingency variables that distinguish between contexts,
● Group similar contexts based on the variables, and
● Determine the most effective solution for each group.
The contingency approach is particularly helpful in analyzing the ethics of marketing

activities. Based on contingency theory, we reject the possibility that a single set of criteria can
determine marketing ethics in all circumstances.
Instead, we examine the interactions between the contextual variables and emphasize
the analysis of the ethical implications of specific scenarios. As the most frequent ethical
conflict that faces marketing managers involves attempting to balance corporate interests
against those of consumers, a useful framework should first examine how a marketer's
perception of marketing ethics interacts with that of the consumer, who is as an integral and
indispensable party to and a key stakeholder of the marketing exchange process.
Nature of the Product
The nature of a product is an important contingency variable that affects the ethical
impacts of marketing practices. Although there is a continuum of product benefits and harms,
products can generally be classified as beneficial, harmful due to abuse/misuse, or inherently
harmful. Many products, such as wholesome food and medications, provide a variety of
benefits to consumers, including physical, functional, emotional, and social benefits.
Consumer Characteristics
Existing studies suggest that consumer capability is the most salient factor in ethical
evaluations of marketing practices. Clearly, consumer capab1lity/vulnerability is multifaceted.
Consumers need mental, physical, and economic abilities to effectively execute a marketing
exchange. At times, however, some consumers may lack one or another type of ability to the
extent that they cannot make informed decisions about a product or benefit from it. Lack of
such capabilities may lead to some degree of vulnerability.
Contingencies and Ethical Implications
They have different ethical implications due to differences in perceptions between

marketers and the public based on the universal principles of equality, fairness, and justice.
Each block provides a unique interaction of the three factors. The white block indicates positive
or non-negative ethical evaluation. Black indicates negative ethical evaluation that marketers
should avoid.
These two areas often represent situations of universal agreement about ethical
practice. The gray block suggests caution due to potential ethical concerns and represents the
area in which there are different ethical perceptions and hence disagreement on the ethicality
of marketing practices.
Based on contingency theory, we describe the following common marketing practices

and discuss their ethical implications.
Scenario 1. Mainstream Marketing
First, companies may market beneficial products to sophisticated and at-risk consumers
through targeted marketing or mass marketing, as in the blocks from A1B1C1 to A2B1C2. In
these cases, companies will receive positive evaluations from consumers and should proceed.
Ringold suggests that marketing transactions with equal participants (i.e., capable and
informed consumers)) are typically regarded as fair and ethically sound. While many
consumers are sophisticated and will not be considered at-risk or vulnerable under normal
circumstances, this is not to say that unethical practices would not occur in these situations.
Unethical practices may affect capable consumers (who do have bounded rationality and are
sometimes vulnerable to unscrupulous marketing) as evidenced by numerous fraudulent
investment schemes. As well, in the case of silicone breast implants, many sophisticated
consumers fell victim to unethical practices.
Scenario 2. Positive Targeting and Social Marketing
Second, targeting and integrated marketing to vulnerable consumers is positive as long

as the products are beneficial, and may be meaningful in some product categories (blocks
A1B1C3 and A2B1C3). Children, due to their body size and stage of mental development, are
often targeted with beneficial products and features such as specially formulated medications,
safety caps for medication containers, and educational toys. Targeting beneficial products at
vulnerable consumers mostly receives positive ethical evaluation. Based on the concept of
social responsibility, many businesses provide beneficial products to vulnerable and
disadvantaged consumers, such as charitable donations to those who are weak and poor.
Social marketing programs also target beneficial products at these consumers, such as free
vaccinations for the children ofpoor families, and low interest rate mortgages for households
with limited income. Marketers should receive positive evaluations from the public for these
goodwill practices that contribute to consumer well-being.
Scenario 4. Predatory Marketing
Fourth, marketing of harmful products to any consumer group is unethical, as indicated

by blocks from A1B3C1 toA1B3C3, which are coded black. Targeted marketing is appropriately
met with intense public scrutiny and even consumer boycotts when products are detrimental to
consumer well-being and lead to health and social problems. For this reason, the marketing of
cigarettes has been curtailed in many countries.
Negative ethical evaluations are even stronger when harmful or potentially harmful
products are targeted at vulnerable consumers, because companies are considered to be
preying on the weaknesses of such consumers (A1B2C3 andA2B2C3). Because cigarettes and
other nicotine products are detrimental to consumer health, it is even more problematic when
they are targeted towards the vulnerable (e.g., young children).
Scenario 5. Discrimination and Redlining
Fifth, the exclusion of certain consumer groups, particularly vulnerable and

disadvantaged consumers, from access to beneficial products is unethical because such
actions limit consumer choices. It is also illegal to exclude any consumer groups from
marketing programs specified under U.S. laws such as the Fair Lending Act and the Fair
Housing Act. However, segmentation and targeted marketing often mean the inclusion of some
groups and exclusion of others, which results in inadvertent redlining.
Scenario 6. Demarketing
However, not all exclusive marketing practices are unethical. Some exclusion is not only
positive but also necessary to protect consumers (blocks A3B3C1 to A3B2C3). Many social
marketing programs are designed to dissuade consumers from adopting harmful of potentially
harmful products, such as alcoholic beverages, cigarettes, and other addictive drugs. In
addition to efforts by government agencies and civic organizations, many corporations also
sponsor and participate in these programs.
To encourage responsible consumption of alcohol products and to prevent drunk driving,

Anheuser Busch Company, for instance, sponsored a consumer education programme that
include advertising, designated drivers, and free taxi rides. These demarketing efforts play a
critical role in educating and protecting consumers and minimizing the potential harm to them.
Scenario 7. Reverse Discrimination
Finally, targeting beneficial products at vulnerable and disadvantaged consumers is not

entirely without controversies, especially when other groups are not included in these
programs. While marketers may face discontent from disadvantaged consumers ─ who are the
traditional targets of discrimination lawsuits also come from the non-target segments.
For instance, long distance telephone carriers and airlines have designed special
promotions for certain nationality groups who make more calls or travel more often to certain
destinations. These and other affinity programs give the target consumers special rates or
discounted fare. Members of other ethnic groups, who are automatically disqualified, may cry
discrimination for exactly the same reasons as traditional victims of discrimination.
Although most reverse discrimination cases have to do with employment-related issues,

some are directly related to social marketing programs that are designed to assist the
disadvantaged. In a number of cases, white entrepreneurs have charged. Small Business
Administration with reverse discrimination, in that these non-members of protected groups have
been discriminated against precisely due to their ethnic background.

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EconElect10

A Learning Material for

for instructional purposes and not for commercialization.

College of Arts and Sciences

The broad phases of an Office of Learning Technologies funded project are:

● Conducting the initial phase (developing partnerships, conducting a needs

● Writing a final report and disseminating your results to others.

Your project plan should include the following elements:

● Major milestones with target dates

● A risk management strategy

• Provides a detailed view of the project's scope;

• Allows you assign responsibility for specific tasks to team members;

The Time Schedule

In your action plan you laid out the

The Time Schedule identifies logical

Managing the Time Schedule

● No project manager is assigned. Most project resources are focused on

● Lack of awareness of project management techniques.

The following hints may help to keep your

● When creating the Time Schedule,

The Project Plan Budget

As part of the application

Milestones are significant events in a project, usually the completion of a major

Common sources of risk in community learning initiatives include:

● Project management risks: such as a poor allocation of time or resources

● Organizational risks: such as resource conflicts with other activities

● External risks: such as changing priorities in partner organizations

● In Project Origination an individual proposes a project to create a product or

● At the beginning of Project Initiation, a Project Manager is assigned. The Project

● Project Execution and Control is where most of theresources are

PROCESS AND TASK IN THE PROJECT

Project Roles and Responsibilities

There are many groups of people

Ideally, the Project Sponsor should be the highest-ranking

The Project Selection Committee comprises members of the Performing Organization

Their responsibility is to accurately represent their

Towards the end of the project, Customer

Customer Decision-Makers are those

Customer Decision-Makers are members of

● The competing projects' merits must be evaluated and compared using a

The three major processes in this phase of the

● Project Selection Committee

Screen Project Proposals

Notify Project Sponsors

One of three outcomes can occur:

● A decision is made to proceed with the project.

● A decision cannot be made on the project without some additional information.

● A decision is made to decline the proposal.

Project Management vs. Project Life Cycle

 They all have a beginning and an end.

● Repeater (a runner with a difference, something outside the norm)

● Are people encouraged to challenge the project management methodology to

Objectives are specific concrete statements of

● Develop goals (three to five).

● Develop objectives for each goal.

The following are a few examples of how to state a goal:

● Reduce gang-related violent crime in the target area.

● Train and place 25 youth in jobs in first year of project.

● Provide anger management class to project youth.

● Provide joint police/probation patrols of hot spots during peak hours.

● Make participation in job training a condition of probation.

● Inform parents of target youth of their child's gang affiliation.

● Provide family counseling to target youth and their families.

● Modify school policies as necessary to promote academic achievement of target